Actors and institutions in Malta

The main public authority for dealing with industrial relations issues is the DIER, which falls under the Office of the Prime Minister. DIER incorporates the Investigative Unit, which is responsible for monitoring conditions of employment and processing complaints of workers who are still in employment or whose employment has been terminated. The work of the unit includes inspections targeting particular sectors or specific complaints, and it refers cases to the law courts. DIER also provides support services to the Industrial Tribunal, is responsible for the Registrar of Trade Unions and deals with mediation and consultations in trade disputes. DIER houses meetings of the tripartite Employment Relations Board, which discusses employment legislation and other employment matters.

The Occupational Health and Safety Authority Malta (OHSA) is the entity responsible for ensuring that all levels of occupational safety and health protection established by Act XXVII of 2002 and related regulations are adhered to, mainly through inspection and court action. OHSA processes queries from employees and employers and gives advice and publishes informative material relating to occupational safety and health.

Jobsplus is the national employment agency. Its main function is that of meeting the labour market needs of employers, jobseekers and employees, for instance by organising training schemes and job matching services. Jobsplus also regulates employment registration and deals with undeclared employment and work permits, among other tasks.

The Employment Commission, set up in accordance with the provisions of the Employment Commission Act, Chapter 267 of the Laws of Malta, aims to guard against discrimination in employment on political grounds.

The Malta Council for Economic and Social Development is a national tripartite body acting as an advisory council that issues opinions and recommendations to the Maltese government on matters of economic and social relevance. The council has a distinct legal personality, is appointed by the Prime Minister and is composed of the following members: a chairperson; a deputy chairperson appointed by the Prime Minister from among members of the public sector; 10 people nominated by bodies representing representative national employers’ and workers’ organisations; the chairperson of the Gozo Regional Committee, ex officio; the chairperson of the Civil Society Committee; two representatives of the government, one representing the minister responsible for finance, the other representing the minister responsible for social dialogue; and the Governor of the Central Bank of Malta, ex officio (Malta Council for Economic and Social Development Act, 2001).

The Employment Relations Board was set up following the enactment of the EIRA. The board is composed of 13 members: an independent chairperson, the director responsible for employment and industrial relations, four employer representatives, four employee representatives and three members appointed by the government. The Employment Relations Board discusses employment-related matters and makes recommendations to the minister responsible for labour, before the publication of any employment-related legislation.

About trade union representation

Trade unionism in Malta has maintained its significance, as reflected in the table below. According to the reports issued by the Registrar of Trade Unions, trade union membership followed an upwards trend from 85,239 in 2010 to 107,920 in 2022. On the other hand, when comparing these figures with the labour supply as indicated in the gainfully occupied population (NSO, 2023a), trade union density dropped by 16% during the same period. This drop can be attributed to a relatively sharp increase of foreign workers in recent years in Malta, whose enrolment in trade unions is difficult.

The right of employees to join a trade union is guaranteed by the principle of the right to freedom of assembly and association set out in Article 42, Chapter 4, of the Constitution of Malta. Maltese trade unionism remains based on the British model, reflecting the traditions of British colonial rule. The model places great emphasis on the ‘shop steward’, who is the important link between the ‘shop floor’ and the trade union upper hierarchy. Among other roles, the shop steward carries out day-to-day union activities at shop-floor level, including the recruitment of members. The evolution of industrial relations in Malta has led to increased cooperation between stakeholders.

To be officially recognised and thus gain legal protection, a trade union must be registered by the Registrar of Trade Unions in accordance with the EIRA (Title 2, part 1). This requires at least seven members of the trade union to sign the relevant application form. In order to be officially recognised at the place of work, the practice is that a trade union must represent at least 50% + 1 of employees who are members of the union in accordance with Legal Notice 413 of 2016, namely the Recognition of Trade Unions Regulations. Nonetheless, employees in various enterprises, in particular in the public sector, have set up different bargaining units and thus obtain separate recognition according to their class of employment.

In the Various Laws (Trade Union Membership of Disciplined Forces) Act 2014, members of disciplined forces are given the right to join a registered trade union of their choice. Such members are now entitled to negotiate the conditions of employment and to participate in dispute resolution procedures, although they cannot take any other form of industrial action in contemplation or furtherance of a trade dispute. These provisions came into force in 2015.

Main trade union confederations and federations

Malta has two trade union confederations: the Confederation of Malta Trade Unions (CMTU) and the Forum of Maltese Unions (FORUM). Due to its autonomous sections and affiliate unions, the General Workers’ Union (GWU), which is Malta’s largest union, is also often classed as a confederation; however, the GWU describes itself as a union rather than a confederation.

Main trade union confederations and federations

Notes:  Involvement through its autonomous sections. * Indirect involvement through member unions.

Source: Registrar of Trade Unions, 2019.

The National Forum of Trade Unions (NFTU) was launched in July 2014. It is composed of a total of 22 unions, the Office of the President and the Centre for Labour Studies at the University of Malta. The tasks of the forum include running information campaigns, holding seminars and carrying out research to gauge public opinion on trade unions. The forum aims to provide an opportunity for trade unions to share experiences and seek collaboration through dialogue. Among the activities carried out to date are seminars on the work of trade unions towards active ageing through collective bargaining, dealing with multiple claims for trade union recognition and analysing the role of unions in closing the gap in workers’ rights to family-friendly measures between the public and private sectors. A national survey on trade unions in Malta was also carried out, and its results discussed among trade unions (NFTU, 2015).

About employer representation

To formally register a new employer association with the Registrar of Trade Unions, a minimum of seven members is required. Once registered, an organisation enjoys the rights granted by the EIRA, such as the right to ‘perform any act in furtherance of any of the purposes for which it is formed’ (EIRA Section 51(1)). Each year, a registered employer association must supply the Registrar of Trade Unions with the number of paid-up members, details of committee members, a copy of its annual report and an audited copy of its financial accounts (DIER, 2020a). Membership of employer associations is voluntary. According to the annual report of the Registrar of Trade Unions 2019/2020, there were eight employer associations registered with the Registrar of Trade Unions, with a total of 9,108 members (DIER, 2020b). By 2021/2022, this had risen to 12 employer associations, with a total of 9,277 members (DIER, 2022). Another important employer organisation, the Malta Chamber of Commerce, Enterprise and Industry, is not registered with the Registrar of Trade Unions.

Employer organisation membership and density, 2012–2022

Notes: * Such data is not collected in Malta. ** Percentage of employees working in an establishment that is a member of any employer organisation that is involved in collective bargaining. n.a., not available.

Main employer organisations and confederations

The main employer associations in Malta are the Malta Employers’ Association, the Malta Chamber of Commerce, Enterprise and Industry and the Malta Chamber of SMEs.

Main employer organisations and confederations

Note: * Data obtained by the Malta Chamber. n.a., not available.

Source: Report by the Registrar of Trade Unions.

The Malta Council for Economic and Social Development acts as an advisory council that issues opinions and recommendations to the Maltese government on matters of economic and social relevance. During the COVID-19 pandemic, the Malta Council for Economic and Social Development played a key role in fostering social dialogue on national-level and sector-specific support measures to safeguard employment and enterprises.

The Employment Relations Board may make recommendations to the minister responsible for labour on any national minimum standard conditions of employment for eventual inclusion in a national standard order, on any sectoral conditions of employment for eventual inclusion in a sectoral regulation order, on conditions of employment and on any matter referred to the board by the minister.

In April 2017, the National Agreement on the Minimum Wage signed by the social partners signalled the first revision of the minimum wage in 27 years. Minimum wage earners are now entitled to increases in their wages on completion of the first and second year of work with the same employer.

Main tripartite and bipartite bodies

Employee representation at workplace level is generally carried out by shop stewards, acting on behalf of the union they represent, who are recognised in their role by their employer.

Trade unions are regulated by the EIRA. The rights and obligations of the trade union and its representatives at shop-floor level are also detailed in collective agreements.

Regulation, composition and competences of the bodies