‘We are striving to raise awareness on national low fertility rate issue’ – Malta Employers’ President

Following his recent appointment as President of Malta Employers, Ivan Refalo speaks to MaltaCEOs.mt about the major challenges facing local employers, his new role and his vision for the association.

Challenges faced by the local employers

Commenting on the obstacles that Maltese employers are currently facing, Mr Refalo mentions the severe shortage of labour and skills across all sectors.

“This is why Malta Employers’ is actively pursuing certain initiatives I will mention shortly. Shortages of workers and talent bring about spiralling wage costs leading to inflationary pressures and loss of competitiveness which can be devastating for export-orientated firms that constitute the majority of our membership,” Mr Refalo says.

Another challenge faced by local employers is “the decline in work ethic and a lack of transversal skills, especially among the younger workforce”. He also mentions the reported increase of mental-health issues among their employees.

“When workers resign from their job, they are not easily replaceable and for some time, the remaining workers need to cover for their colleagues who have resigned, adding more pressure on the job and potentially resulting in more mental stress” Mr Refalo expressed.

The President of Malta Employers’ continued that the lack of essential skills, such as effective communication, teamwork, critical thinking, and problem-solving, could exacerbate the overall stress experienced in the workplace.

The association’s top priorities

Asked about the association’s first main objectives, he highlights the following:

• Rationalising the local labour force and driving towards upskilling

Commenting on these priorities, Mr Refalo underlines how Malta’s greatest strength lies in its people, therefore making it essential to develop a comprehensive strategy to fully leverage its human capital.

“This can be achieved,” he continues “through the adoption of new technologies, such as AI and automation in new and traditional sectors, as well as by strengthening career guidance structures and adapting to an aging workforce”.

Mr Refalo emphasises how important it is to implement measures that “remove fiscal anomalies, provide incentives to adapt work environments and enhance education as well as training opportunities.”

• Seeking workable and sustainable solutions to the country’s low and declining fertility rates

Mr Refalo also comments on the country’s low fertility rate and hopes to increase awareness on the matter. In a national effort to tackle this issue, he highlights how the association intends to “promote sustainable family-friendly measures that respect the parameters of the economy’s productivity and competitiveness.”

“During my presidency,” he says, “I intend to push for social dialogue on this matter of existential importance for Malta.”

The long-term vision

Asked about his long-term vision for the Malta Employers’ under his leadership, Mr Refalo reiterates his intention to continue building on Joanne Bondin’s work, the association’s previous President.

He specifically draws attention to her “inclusive leadership which has been very effective and successful to the association,” and aims to apply a similar style.

Mr Refalo also stresses Malta Employer’s vision to be the “leading strategic partner for employers and policymakers, and a catalyst for innovative employment best practice.”

Committed to fostering constructive, transparent and impactful dialogue among all social partners, Mr Refalo speaks about the association’s role within the local socio-economic landscape: “As we celebrate our 60th Anniversary, my goal is to see our organisation grow in influence and impact.”

With regards to the Malta Employers’ core values, Mr Refalo reiterates what the association’s public statements continuously vouch for: being in favour of good governance. “Our members expect to operate within a structure where checks and balances function effectively and where the rule of law reigns supreme.” he said.

The Henley MBA graduate notes: “We shall continue to engage with all stakeholders and our political leaders to ensure they appreciate the challenges faced by employers when faced with populist proposals, that may seem appealing in the short term but risk overburdening resources and undermining competitiveness, investment and job creation in the long run.”

Mr Refalo also adds that political decisions should be grounded in evidence and strike the right balance between the interests of employers and workers alike.