Blanket reductions in working hours will undermine competitiveness and jobs – Malta Employers
Malta Employers Launches Four-Day Working Week Position Paper after extensive survey among members
- Not one-size-fits-all: While a four-day week may work in specific company contexts, Malta’s sectoral realities, productivity levels and labour market constraints make a blanket or legislated approach impractical across the economy.
- Employers unconvinced: A survey of MEA members shows that 58% of employers do not believe a four-day week is suitable for Malta at this stage, citing concerns around labour costs, competitiveness and operational feasibility.
- Flexibility already widespread: Employers are already investing in work–life balance, with 73% offering flexible working hours, 70% providing remote-working options, and 85% reporting improved work–life balance among employees as a result.
Malta Employers has cautioned that a four-day working week is not a universally applicable solution, and that while it may work in specific company settings, Malta’s sectoral realities and labour market constraints rule out any economy-wide approach. The position is outlined in a paper examining the implications of reduced working time in the Maltese context.
“The notion of a four-day week may be viable for certain individual companies and organisations. However, different sectors operate within very different realities, and it would therefore be impractical to impose such a concept across an entire nation”, said Ivan Refalo, Malta Employers President, addressing a conference launching the Association’s position paper.
The publication, Debating the Concept of a Four-Day Week in Malta, features an extensive analysis and set of recommendations prepared in response to the growing public debate around the possible introduction of a four-day working week. The paper examines reduced-hours arrangements, compressed working weeks and productivity-linked models, assessing their potential impact on productivity, labour costs, competitiveness and family life within the specific context of the Maltese economy.
It also reviews experiences in different countries alongside studies by organisations including the ILO and the OECD. It concludes that outcomes vary widely depending on economic structure, productivity and income levels, as well as whether changes are introduced voluntarily or through legislation.
Mr Refalo explained that Malta’s labour market presents several structural characteristics that must be carefully considered in any discussion on reduced working time. These include persistently low unemployment, skills mismatches, a heavy reliance on labour-intensive and high-contact service industries, and significant demographic challenges. “Any proposal related to working hours must take these realities into account,” he said.
Addressing the event, Malta Employers Director General Mr Kevin J Borg noted that while the debate on working hours has intensified internationally, there is no single model that can be applied uniformly across all sectors. He cautioned that blanket reductions in working hours risk increasing labour costs, undermining competitiveness and leading to unintended consequences, including job losses or greater reliance on imported labour.
“Any meaningful reduction in working hours over the longer term must be preceded by a broader economic transition towards higher value-added activity, supported by investment in technology, digitalisation, automation, AI and skills development”, Mr Borg added.
Survey shows strong uptake of flexibility at work
As part of the analysis, Malta Employers also conducted a survey among its members, with preliminary findings pointing to notable reservations within the business community. Initial results show that 58% of employers surveyed do not believe that a four-day week is suitable for Malta at this stage.
At the same time, the survey reveals that employers are already proactive in offering flexible work arrangements. In fact, 73% provide flexible working hours, while 70% offer opportunities for remote work. A significant 85% of respondents reported that such arrangements have improved employees’ work–life balance. Moreover, more than 72% indicated that they intend to either increase their current level of flexibility or maintain it, countering trends seen in some other European countries.
While acknowledging the genuine pressures faced by families, particularly dual-income households with young children, the position paper recognises the importance of work–life balance, employee well-being and family-friendly measures. However, it stresses that any discussion on a four-day week should be grounded in voluntarism, flexibility and social dialogue rather than imposed legislative solutions.
MEA_-Position-Paper_4-day-week.pdf