Author: SME Chamber

Were you ever about to sign a contract for a personal loan, credit card, or other consumer credit and discovered that it was all working out more expensive than you had first expected? An EU-wide investigation of websites offering consumer credit took place to check whether consumers are receiving the information to which they are entitled under EU consumer law before signing a consumer credit contract.

National enforcement authorities checked more than 500 websites across the 27 Member States plus Norway and Iceland. They flagged 70% (393) of sites for further investigation in relation to the following main problems: the advertising did not include the required standard information; the offers omitted key information that is essential for making a decision; the costs were presented in a misleading way. National enforcement authorities will now contact financial institutions and credit intermediaries about suspected irregularities and ask them to clarify or take corrective action.  The sweep operation checked in particular how business is applying the Consumer Credit Directive (recently transposed in Member States), which aims to make it easier for consumers to understand and compare credit offers.

EU Consumer Commissioner John Dalli said "When people look for credit they sometimes discover that this credit turns out to be more expensive than it had originally appeared, because important information was sometimes unclear or missing. Consumer credit is not always easy to understand, which is why there is European legislation in place to help consumers make informed decisions. It is therefore very important that businesses provide consumers with the correct and necessary information. And it is the role of the Commission to work together with national enforcers to make this happen."

A "sweep" is an exercise to enforce EU law. It is led by the EU and carried out by national enforcement authorities who conduct simultaneous, coordinated checks for breaches in consumer law in a particular sector. The national enforcement authorities then contact operators about suspected irregularities and ask them to take corrective action. The Consumer Credit sweep took place in September 2011.

Six countries conducted a deeper investigation "Sweep Plus" of 57 sites to check compliance with consumer rules including payment arrangement, complaint handling and terms and conditions.

The market under scrutiny is used by consumers every day.  In 2010, financial institutions in the eurozone had more than €600 billion outstanding consumer credit.

Results

Of the 562 websites originally checked, only 30% passed the sweep test for compliance with the relevant EU consumer rules and 70% of these sites (393) were flagged for further investigation. The main problems found were:

• Missing information in consumer credit advertising: advertising on 258 (46% of websites checked) did not include all the standard information required by the Consumer Credit Directive, e.g. i) the annual percentage rate of charge (APR), which is essential to compare offers, ii) information on whether charges on obligatory ancillary services (e.g. insurance) were included in the total cost, or iii) on the duration of the credit agreement;
• Omission of key information on the offer: 244 (43%) websites did not give clear information about all the different elements of the total cost, e.g. i) on the type of interest rate, (fixed, variable or both), ii) on the duration of the credit (if applicable), and iii) on some of the costs related to the credit (e.g. an arrangement fee);
• Misleading presentation of the costs where the cost of the credit is displayed in a way which is false or could deceive consumers, e.g. i) in the way the price is calculated, or ii) if the consumer is not informed that beyond the cost of the consumer credit itself there is an added obligatory insurance. 116 websites (20%) of the websites displayed this kind of problem.

Sweep Plus

Six countries (Italy, Estonia, Latvia, Lithuania, Slovakia, Sweden) conducted a deeper investigation on 57 of the sites checked – the Sweep Plus exercise. The main problems related to pre-contractual information and contract terms.

What happens next?

The enforcement phase will now start: in the coming weeks and months business operators will be contacted by the national authorities and asked to provide clarifications or correct their websites. Failure to do so, depending on the national legislation which is applicable, can result in legal action leading to fines or even closure of the websites. The national enforcement authorities are asked to report back to the European Commission by autumn 2012. The Commission will report on the results.

For more information:

http://ec.europa.eu/consumers/enforcement/sweeps_en.htm
MEMO/12/02

Why did you become an entrepreneur? I was born into the business started by my grandfather. I had an interest in business for as long as I can remember. I always dreamt of having my own business.

How have you come to chose your line of business?

My grandfather used to sell medicine. I first opened a pharmacy and later started importing.

Where did you go on your last holiday?

Paris

What is your earliest memory?

When I formed a band.

If you could chose to be someone famous who would you be?

Pierre Cardin or Giorgio Armani

Kjarifikazzjoni dwar tariffi relatati ma' Heavy Plant Drivers u Spinelli – Il-Bord ghall-Haddiema tal-Port li jiddetermina t-tariffi relatati lill-haddiema tax-xatt kif huwa stipulat skond il-Port Workers Ordinance f'Kapitlu 171 jghid li:

L-Iskerjament ta' Heavy Plant Drivers kif huwa stipulat fil-Port Workers Regulations 171.02 se jkun skjerat waqt operazzjoni ta' dghajjes meta jkun hemm materjal bhal:

• Heavy Plant Machinery – Apparat li jintuza ghat-thaffir
• Other heavy vehicles – Ezempju trakkijiet

Il-Vetturi kollha li ma jkunux akkompanjati u li jaqbzu is-sebgha metri – Ezempju vetturi li jgorru karozzi izghar fuqhom

Il-Bord ukoll iddecieda li kull meta bastiment ikun ekwipaggat bi spinelli, id-decizjoni mehuda mill-Port Disputes Board fil-passat , li kull trailer marbut ma' din il-manjiera ghandu bzonn aktar attenzjoni se tibqa' applikabbli.

Ghalhekk VGT – Valletta Gateway Terminals tixtieq tavza' lill-agenti u lill-konsumaturi kollha li dawn it-tariffi adizzjonali kollha se jkunu iccargjati kif gej: – Heavy Plant Drivers li kienu jigu iccargjati minn agent tal-bastimenti, issa se jigu iccargjati ghal dawk il-konsenjaturi/bahhara li qed jimpurtaw/jesportaw il-materjal imsemmi hawn fuq.

L-Ispinelli ser jigu iccargjati mill-agent tal-bastimenti.

GRTU's Executive council, yesterday met Dr.Frank Weise, Chairman of the Managing Board of the Federal Employment Agency. The German Federal Employment Agency is the labour market's biggest service provider in Germany.

GRTU's Director General explained the role of the GRTU and what kind of enterprises does the GRTU represent especially in relation to their size and employment. He also explained how GRTU is involved in employment related fora both at national and EU level. Mr Farrugia emphasised on the importance for Malta to build on good quality labour not only in terms of productivity and flexibility but also in terms of training and trainability. He also pointed out that the employment within the enterprises GRTU represents withstood the crises so far as the smaller employers are less keen on putting off people.

GRTU members today are finding it difficult to find people in employment that are skilled in a certain area such as qualified renewable energy equipment installers and this happened before in the pharmaceutical sector.

Claudio Farrugia stated that the ETC opened courses in the financial services sector and these where overbooked 3 fold. The Director General said that this shows how keen the young generation is of doing something that is not traditional but the emerging, the one with more potential and well paid. He also said that Germany is more attune with the requirements of the market and the general economy, this is something Malta has a lot to learn from.

Dr Frank Weise stated that Germany has the same pattern of SMEs being the largest employers. Mr Weise and his colleague were surprised that at the hotel where they are staying almost every person they encountered that worked there speaks basic German.

Mr Farrugia mentioned what a problem we have in Malta is of business succession. Mr Weise said that when a  company is   passed to the next generation they are given 10 years tax free in order to encourage business succession.

Dr Frank Weise stated that in Germany there is less than 3 million unemployed people. He also mentioned 3 main reasons that would describe two thirds of the unemployed: no school qualifications, no work qualification and they are over 50.  He also pointed out that something that is not being done right in Germany is that companies they lay off people over 50 to keep the youngest ones and then spend a lot of money in retirement schemes.  The German Government is encouraging people to work longer and will be necessitating more years of work to be able to have a pension.

Marcel Mizzi GRTU Council Member and President of the IT Sector stressed that Malta is doing a lot of work in IT when it comes to education but we need to do much more as the industry needs more specialised skills which will need more time.

Noel Gauci GRTU Council Member and President of the GRTU Renewable Energy Sector pointed out that Renewable energy in Malta is still very young and so it is difficult to find able workers and they would have to train them themselves. Some work has started on this but we need much more as training employees is a problem in the sector which is costly and time consuming. The sector has not felt much mobility of Europeans coming to Malta to work in this sector.

Another point was raised from Philip Fenech GRTU Council Member and President of the GRTU Hospitality and Leisure Sector who said that the schooling in the hospitality industry is very intense and some are over qualified for the sector and the hospitality and leisure industry ends up employing Europeans to make up for this gap. From central eastern Europe mostly.

Road building, waste sector, kitchens and garages also have recruitment problems but these sectors employ 3^rd country immigrants. This is not because of the pay but because very few  Maltese are still interested in doing this kind of work.

For GRTU we have nothing against the employment of third country nationals as we do not look at the skin colour, religion, language, etc… We are interested in having people employed to be able to sustain themselves and trained in the work they are doing.

ETC CEO Claudio Farrugia stated that 65% of people who come to train at ETC are already employed and seeking to better their position and these are much more motivated than the unemployed who want to be trained.

Mr Claudio Farrugia also introduced another ETC representative who will be heading a new unit solely to assist the private sector. He also mentioned that a manager has been recruited and her task is to work closely with the GRTU on better responding to SME needs and skill needs.

Dr Frank Weise stated that there is a new law in Germany that following dismissal a person has to go to the German Employment Federation within 3 days otherwise the unemployment benefit will be decreased. He also said that they are also working on early intervention were they work with the still employed but soon to be unemployed.

The message from the Commission on the budgetary situation in Malta did not reach GRTU with surprise. Director General Vince Farrugia, who is also Rapporteur of EESC on Budgetary Surveillance in the Euro Area, stated most strongly on Budget Day 2012 that more action needs to be taken to address the Budget deficit.

"It can be done". The GRTU however warns, as the Commission is doing, that further unproductive investment as subsidies to Airmalta  and further increases in emoluments to public sector employees will further endanger Malta's internal financial imbalances.  We must now act with diligence. GRTU insists to further support micro, small and medium enterprises. They have suffered and carried the measure burden to sustain employment and investment in the difficult period of recession. They cannot now, once again be made to pay and suffer while the non-productive sectors continue to receive the hefty handshakes of Government hand-outs.

Government must act serioiusly in favour of the productive sector. Hands off the schemes in support of small businesses. We welcome the establishment of the new Minister for Small Businesses and the self-employed announced in the latest Government and reshuffle, but more than words we want action. GRTU

stresses no reduction in the Capital Budget expenditure. Indeed we urge Government to move faster on the planned capital investment programmes as it is essential that expenditure is increased in the first 2 or 3 quarters of 2012 as the end of the year may otherwise suffer from the impact of falling receipts due to the EU slow to negative economic growth.

This is no time for unnecessary political bickering. This is the time for decisive action on the economic front .GRTU appeals to our political leaders, Government, Opposition and all other to give the economy a chance. We in business want to work. We can work and we can do our utmost to get the economy moving in these difficult times. But do not create unnecessary problems. Government must keep small businesses top on its agenda.

The plea for our people is one and clear: "let us work" says Vincent Farrugia Director General GRTU and EESC Employers Board Member.

Il-GRTU tesprimi sodisfazzjon bit-tkabbir tal-Kabinett ta` Ministri u b`mod partikolari li s-settur tan-Negozji Zghar u l-qasam tat-Turizmu issa gew elevati ghal livell ta` responsabbilta Ministerjali diretta – Il-GRTU taqbel li l-Prim Ministru ghalaq il-kapitlu ta` Gvern b`numru limitat ta` Ministri u issa kabbar mill-gdid il-Kabinett tal-Ministri u eleva ghall-livell ta` Ministru lil min ihaddem u ta rizultati. Dan hu awgurju u inkoraggiment ghaliex l-oqsma kollha maghzula huma ta` portata kbira fil-glieda tal-poplu Malti ghal tishih ekonomiku u avvanz socjali.

Ahna bhala GRTU kuntenti b`mod partikolari li l-portfolio tan-negozji zghar gie elevat ghal livell ministerjali ghaliex ma kinietx taghmel sens li settur li jirraprezenta 98% tal-Intrapriza lokali ma kellux livell Ministerjali u naqblu wkoll li t-Turizmu wkoll rega gie elevat ghal livell Ministerjali.

Naqblu wkoll li saret is-separazzjoni bejn il-Gustizzja u l-Intern.

Il-GRTU tawgura lil Ministri l-godda li jkunu success fil-Ministeri importanti fdati taht ir-responsabilta taghhom.

Commission extends public consultations to 12 weeks and creates new ‘alert service' – Brussels, 3 January 2012 – From 1 January, the European Commission gives citizens, businesses and non-governmental organisations at least 12 weeks to comment on plans for new policies and legislation, compared to 8 weeks previously. This will make it easier for them to get involved in EU policy-making at an early stage. The Commission has also introduced an alert service  for upcoming initiatives: Organisations that sign up for the Transparency Register, can subscribe to this alert service to get early information on the roadmaps for new initiatives in their fields of interest about one year before there adoption.

The President of the European Commission, José Manuel Barroso, said: "A key part of getting our policies right is listening to the people who will be affected by them. By keeping our consultations open longer we will strengthen the voice of the citizens, businesses and organisations that help us shape our policies for the benefit of all."

The Commission hopes that the extended consultation period and the new alert service will increase the participation in its consultations, especially from those groups who up until now have been underrepresented. For example, SME federations will now have more time to organise themselves and consult their members on how a new policy proposal may impact small businesses.

With its policy for 'smart regulation' the Commission aims at involving citizens and businesses in the legislative process to ensure that it takes all relevant evidence and concerns into account when drafting a legislative proposal.

Whole-Time Employees

— 2011

— 2012

Part-Time Employees

The national minimum wage of part-time employees shall be calculated pro rata at the same hourly rate of a comparable whole-time employee in accordance with the relevant Wage Regulation Order (WRO). In cases where a WRO is not applicable, the pro rata is calculated using the weekly National Minimum Wage applicable for a comparable whole-time employee, divided by forty.

Where a WRO applies:

Weekly Minimum Wage of a comparable whole-time employee as per applicable WRO

Weekly hours of work of a comparable whole-time employee as per applicable WRO

Where a WRO does NOT apply:

Weekly National Minimum Wage applicable to a comparable whole-time employee
40

The relevant minimum wage may be determined from the economic activity of the enterprise as stipulated in the applicable WRO. The  information  provided is intended for general information only, if you require further details under which sector your organisation is classified kindly contact the Department of Industrial and Employment Relations.

Nine new EU directives are in place ensuring better product safety for a wide variety of products. The sectors concerned are electrical and electronic products, lifts, measuring instruments, civil explosives, pyrotechnic articles and equipment for use in potentially explosive atmospheres.

With these directives, market surveillance and customs officers will be in a better position to check the safety of products using more effective tools. In addition, Member States can improve the supervision of monitoring bodies that check the conformity of products with EU law, for example ensuring that the CE marking has been properly applied by manufacturers. In future, producers, importers and distributors will profit from uniform trading conditions. At the same time this process will further improve the safety of products on sale in the EU and make it easier to keep
non-compliant products off the market. This will lead to increased consumer trust and reductions in administrative burden and costs:

For more information:

http://ec.europa.eu/enterprise/policies/single-market-goods/regulatory-policies-common-rules-for-products/new-legislative-framework/index_en.html