Category: Archive – 2009

GRTU welcomes the measures proposed by the European Commission in its Communication "A shared Commitment for employment" published last week. The Commission has been able to focus on the right priorities, with a special attention given to improve vocational training in order to better match labour market needs.

According to Xavier Durieu, Secretary General of EuroCommerce, representatives of GRTU in Brussels, we are probably faced with the worst recession of the past 70 years. Given the resulting fall in consumption and consumer confidence, it is essential that public authorities take the right steps to ensure that private consumption is maintained, to favour labour market flexibility and to boost employability particularly of those workers who are most vulnerable because of education or skills deficits.

The employers of the commerce sector express their satisfaction for the publication of the Commission's Communication putting forward priorities and actions to preserve jobs and help those facing difficulties while paving the way for recovery.

The Commission puts forward three key priorities: maintaining employment, creating jobs and promoting mobility; upgrading skills and matching labour market needs; increasing access to employment. These measures should be regarded as complementary to other initiatives taken by the Commission to face the crisis, included recent proposals on financial supervision and the proposal aimed to improve the functioning of the European Globalisation Fund in times of crisis.

The proposals contained in the Communication are consistent with the EU longer term strategies to reform labour market as part of the Lisbon strategy. GRTU particularly welcome the focus put on the necessity to provide young people, included the less favoured of them, with the training and opportunities they need to ensure they have more chances to enter the labour market. Actually, the improvement of skills to better match the needs of labour market is a priority for a dynamic sector such as the commerce is. 

It is also important that the demand side of labour market gets the right attention and that the difficulties of businesses are taken into account, mainly through the Commission's call to reduce the non-labour wage costs and promote entrepreneurship and self-employment, which are essential for the commerce sector.

EU Member States supported new rules to improve the energy performance of several products at the Ecodesign and Energy Labelling Regulatory Committee meeting. The package sets mandatory energy performance requirements and creates an upgraded energy labelling system for televisions and 'white goods'.  These new measures are expected to cut the EU's electricity consumption by 51 terawatt hours by 2020, which corresponds to the combined annual electricity consumption of Portugal and Latvia.

"This package of ecodesign and energy labelling measures is a crucial contribution to achieve our energy efficiency goals. I am particularly pleased with the new energy label, which is very clear for consumers, accelerates the race for top efficient products, and boosts market transformation and energy savings", said Energy Commissioner Andris Piebalgs.

Under the ecodesign proposals, televisions and white goods, i.e. large electrical home appliances, will not be allowed to consume more than a certain amount of energy. For products meeting the requirements, a new energy label will inform consumers of the actual performance of the appliance and allow for comparison before purchase.

The proposed measures for the new energy label for televisions and white goods build on the well-known "A-G" energy efficiency classes, which are complemented by new dynamic classes "beyond A". The new format allows consumers to judge – and manufacturers to show – at one glance how much "better than A" a product really is. So, for example, "A-20%" meaning that the product consumes 20% less energy than an "A" model product

The measures are expected to result in annual electricity savings of 51 TWh by 2020, with 43 TWh coming from the measure on TVs, 6 TWh from refrigerators and freezers, and 2 TWh from washing machines.

The EP adopted three resolutions on the candidate countries for accession and their progress in 2008. On Croatia, MEPs regret that accession negotiations have been blocked because of the border dispute with Slovenia. MEPs welcome the readiness of Croatia and Slovenia to accept the mediation offer made by the Commission. Furthermore Croatia should also work harder in areas such as fighting organized crime and corruption. Moreover, it believes that Croatia should put more effort into modernizing the judicial sector.

On the other hand, the resolution says that Croatia has improved mostly in areas such as anti-discrimination and women's rights. The Parliament emphasizes the need to concentrate on economic and social rights of minorities. Croatia also has to decrease its current deficits and debts. MEPs are satisfied with the privatization processes in the steel and telecommunications industries. In the near future, Croatia should also work toward privatizing shipyards. In all, the Parliament is confident that negotiations with Croatia can be concluded in 2009.

The "continuous slowdown of the reform process" in Turkey, for the third consecutive year, is noted with concern by the EP. Turkey has so far started only 10 of the 35 negotiating chapters with the EU. Only one chapter which is science and research has been concluded. In relation to democratic reforms, MEPs regret that freedom of expression and freedom of the press are still not fully protected in Turkey. MEPs also regret that the initial effort to reform the constitution resulted in dispute over the headscarf issue and generated further polarisation of society. MEPs also urge that the law on political parties be amended. The draft resolution also calls on the Turkish government to resume work on a new civilian constitution and to take action to reduce the number of "honour killings" of women.

MEPs welcome the approval of the National Programme for the Adoption of the so-called "Acquis communautaire" and the establishment of the ‘Women-Men Equal Opportunities Commission' in the Turkish Parliament. The resolution stresses the need to reach "a comprehensive settlement" of the Cyprus question based on UN Security Council resolutions. MEPs point out that if Turkey's commitments are not fulfilled by December 2009, it will seriously affect the process of negotiations. MEPs added that Ankara must commit itself to a lasting settlement of the Kurdish issue.

MEPs ask the Council to decide on a date for the beginning of accession negotiations with FYROM. MEPs underline the need for FYROM and Greece to find a mutually acceptable solution on the name issue while reiterating their support for the UN-brokered mediation process. MEPs also welcome the progress MEPs also ask the authorities in FYROM to ensure the freedom of the press. Parliament deplores the disadvantaged position of the Roma minority in the country and asks the government to act. MEPs ask the Government of FYROM to improve the waste facilities of the country and preserve the quality and level of the water in the border water basins.

Parliament welcomes the progress made by the country in a number of areas, including visa issues, fight against human trafficking, illegal migration, a functional market economy, progress in the management of the Instrument for pre-accession assistance and progress in the area of Parliament calls FYROM for solidarity with its neighbours with regards to the culture and history and warns against the resurgence of "hate speech".

Source: MEUSAC General Affairs Committee Update

 

 

 

 

European Commissioner for Competition Neelie Kroes has indicated that, on the basis of information currently available, she sees no need to pursue MasterCard for non-compliance with a 2007 Commission decision that MasterCard's cross-border multilateral interchange fees (MIF) were in breach of EC Treaty rules on restrictive business practices.

 

Neelie Kroes said: "I am satisfied that these undertakings will not only improve the efficiency and transparency of the MasterCard payment card scheme but also provide a fair share of the benefits to consumers and retailers. The new methodology for calculating the MIF will help to bring clarity for banks and retailers and also lead to a substantial reduction in comparison to MasterCard's previous MIF. We will be monitoring implementation closely in the coming months."

The Commission decided in December 2007 that the MIF established by MasterCard for cross-border transactions made with MasterCard and Maestro branded debit and consumer credit cards, did not comply with EC Treaty rules. Nevertheless, the decision did not exclude the possibility that a MIF might be compatible with EC antitrust rules if it had positive effects on innovation and efficiency and allowed a fair share of these benefits to be passed on to consumers. The Decision gave MasterCard six months (until 21 June 2008) to adjust its behaviour to comply with the antitrust rules with the  possibility of imposing penalty payments for any delays in the implementation of the Decision. On 12 June 2008, MasterCard provisionally repealed its cross-border MIF, while continuing to engage in discussions on a methodology to determine MIFs where consumers and retailers would enjoy a fair share of the benefits.

MasterCard has now given three undertakings:

First, MasterCard will, as of July 2009, calculate the cross-border MIF according to a methodology which ensures that MIFs reflect the transactional benefits to merchants of accepting payment cards as opposed to cash. The calculation of a MIF on the basis of this methodology will lead to a substantially reduced maximum weighted average MIF level: 0.30% per transaction for consumer credit cards and 0.20% per transaction for consumer debit cards. For comparison, depending on the card, MasterCard's cross-border MIFs ranged from 0.80% to 1.90% in 2007. Maestro cross-border MIFs ranged from more than 0.40% to more than 0.75%).

Second, MasterCard will, as of July 2009, repeal the scheme fee increases it announced in October 2008 (see below).

Third, MasterCard will, as of July 2009, adopt certain measures enhancing the transparency of its scheme which will allow consumers and merchants to make better informed choices about the means of payment they use and accept. For example, MasterCard's rules will be changed so that merchants are offered and invoiced distinct rates according to the type of card that is used, i.e. they will be offered so-called 'unblended' rates.

In October 2008 MasterCard revised its acquirer pricing structure in the EEA, which included increasing certain existing acquirer fees (charged by a payment card scheme, in this case MasterCard, vis-à-vis its member banks in the framework of their adherence to the scheme), introducing a new fee on acquirers, and repealing certain acquirer fee waivers. However, these fees will now be repealed.

In view of the changes to be made by MasterCard to its MIFs, its agreement to repeal the scheme fee increases and on the basis of the information currently available about these markets, Commissioner Kroes does not intend to propose to the Commission to pursue MasterCard either for non-compliance with the Commission's 2007 decision, or for infringing the antitrust rules by increasing its scheme fees or by reintroducing a cross-border MIF.

As regards Visa's behaviour on the payment cards market, the Commission will continue its antitrust investigation and will monitor the behaviour of other market players to ensure that competition is effective in this market to the benefit of merchants and consumers.

GRTU and our European Counterparts, EuroCommerce, is very disappointed at the weak compromise announced by the Commission on MasterCard interchange fees.

The decision to allow MasterCard to continue charging retailers and consumers a percentage fee on each card transaction is wholly unjustified and ill-conceived. Likewise, the setting of different rates for credit and debit cards has no basis in market reality. Both types of transaction require the same processing; therefore they should attract the same cost. This cost, according to studies done by the banks themselves, is less than one euro cent per transaction.

"We are appalled at the failure to abolish the ad valorem interchange rate," said Xavier Durieu, EuroCommerce Secretary General. "At a time when consumers are fighting to keep their heads above water, this lacklustre compromise sets a very bad precedent for this tax on payments at national level."

Further, the decision does not address the honour all cards rule, or deal with commercial cards which attract much higher interchange rates than consumer credit cards. Retailers are very concerned that banks will step up their push to switch consumers to commercial cards.

We can only hope that once the Commission has completed its costs study and has fully taken into account data from retailers, these calculations will be revised.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Services Directive seeks to eliminate barriers to the free establishment of service providers and the free circulation of services between EU Member States. The Commission proposal sought to use the ‘Country of Origin' principle as the general rule for service providers.

The debate quickly escalated between the defenders of the ‘Country of Origin' principle and those in favour of the ‘Country of Destination' principle. The parliamentary rapporteur, Ms. Gebhardt, proposed the ‘third way' with the rule of free provision of services, which was eventually adopted by the Parliament on 16 February 2006. The free movement of companies is encouraged by the removal of a number of administrative obstacles, but companies will have to apply on the same territory the same rules regarding the working conditions of their employees, protection of the environment and safety and health.

EBC was satisfied with the vote at the European Parliament, which removed the ‘Country of Origin' principle. This principle, which appeared simple and interesting to some, provocative and worrying to others, was considered by the craftsmen and SMEs from the construction sector to carry the risk of unfair competition due to the important differences between national legislation in the Member States.

GRTU has throughout actively supported a pragmatic outcome to the debates and promoted understanding of the benefits of this much mis-understood directive in creating a true Internal Market and therefore making the EU economy as a whole more competitive.

GRTU believes that creating the conditions for companies and their workers to better benefit from the European single market and from the achievement of its major objectives lead to economic development and thus job creation. In particular we consider that cutting red tape, improving legal certainty for companies and reducing unnecessary costs are the kind of objectives that through the implementation of the Services Directive should be achieved.

A number of rules will be particularly beneficial for European SMEs if properly applied at national level. Clauses setting up "single points of contact" in each Member State, for instance, will support small businesses operating at national and cross-border level.  The Directive now allows Member States to keep their regulations on the establishment of retail stores and the prohibitions to sell below cost, both of which were of the utmost importance for small firms and retailers. On the other hand, screening and notification requirements will ensure that national legislation is assessed for compliance and amended when necessary, thus removing pointless red tape while at the same time giving Member States the possibility to protect their general interest.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The European Commission has launched an investigation into the growing problem of lost air passenger luggage. The problem is a huge and growing headache for air travellers, with an estimated 1.2 million bags irretrievably lost in 2007, around one bag for every 2,000 passengers.

The EU executive's transport directorate will seek information on the problem from the AUC, the Airports International Council, and the Association of European Airlines and other parties.

Source: MEUSAC Competitiveness and Consumer Affairs Committee Update

 

 

 

The GRTU's second section meeting was for the Jewellers section on the 3rd of April 2009.

GRTU would like to thank those who attended for giving their time to keep this section alive and making their contributions. We hope to have the opportunity to touch base and work with those who did not manage to make it.

Below are the minutes of the meeting.  

All present were presented with a paper that was written to Mr Alfred Camilleri, Permanent Secretary within the Ministry for Finance, the Economy and Investment. This paper was drafted by GRTU Jewellers representatives because the members in the Jewellers section were being negatively hit by bureaucratic procedures and certain practices of the Consul.

Following the paper submission GRTU held a meeting with Mr Alfred Camilleri and following this several of the problems experienced were toned down. GRTU however still decided to represent the paper to the section for discussion and update. This was done with the aim that a follow-up paper would be represented to the Ministry for Finance the Economy and Investment and if GRTU's suggestions are taken up we want them in writing. With this a conclusion to several of the issues whether positive or negative would be reached and the members would know where they stand.

The Section discussed in detail the paper which has now been represented to the Ministry in the form of a Memo. The memo being placed below for Members to view and comment if required.

GRTU will be meeting the Ministry to discuss the issue. Following this, a meeting report will be published in the GRTU newSTRING.

Memo content below:

1. Labelling.

As already agreed to in a meeting with the Consul and Mr Imbroll in May 2004 labels having 18ct Gold, 9ct Gold and Sterling Silver should be allowed as 18ct can only mean 18 out of 24 = 750. Unfortunately this practice was not followed by the Consul as is shown in the relevant court cases.

An example of such is the case the consul's office (witness for office was David) had against Sterling Jewellers where the court decided that 18ct Gold has more meaning to consumers than Gold 750.

In order to avoid further such situations GRTU would like to have the agreement reached in May 2004 in writing. Should the Consul refuse to make this in writing GRTU requests an urgent meeting with the Consul and your kind self.

2. Hallmarking.

GRTU agrees that all items placed on the market must bear a manufacturers or sponsor mark and finesse mark unless exempted by current legislation.

When the item has no mark on it (and when it is locally produced) then the manufacturer or sponsor must stamp his identification mark and the finesse mark in the surrounds as specified today.

When the product already has a finesse mark and no manufacturer mark then the product must be stamped with a sponsor mark without the need to restamp a second finesse mark.

When the item is imported and already has a manufacturer mark and finesse mark made by any foreign manufacturer then these marks are enough and there is no need to restamp the "local" sponsor mark and finesse mark. This will protect the local importer from having to check if the factory mark is from an EU manufacturer or a non EU manufacturer and do the sponsor mark accordingly. Also this regulation is often impossible to apply as there is simply no space for the extra markings. One must keep in mind that we are dealing with highly valuable and delicate items.

Currently, if an importer buys from a European wholesaler a product that has both a manufacturers mark and finesse mark, but the manufacturer was not an EU manufacturer and offers it for sale in Malta without a sponsor mark and new finesse mark in the local surrounds, he is criminally responsible, has the product confiscated and is taken to court.

GRTU does not believe that consumer protection is a reason for the requirement of all the extra marks and bureaucracy since consumer protection is guaranteed as the shop selling the product is today held responsible for the quality o the product and not the manufacturer or sponsor.

GRTU would like to see these requests accepted in writing. If these requests require further discussions GRTU is available to explain its and that of its member's point of view.

3. Hallmarking Fee.

The Hallmarking fee was set by the Consul at 1% of gold content value and 5% of silver content value when the price of gold was about Euro 9,000/kg in 2004. Today the price of gold is around Euro19,000/kg and so the fee has more than doubled. We are therefore requesting that the fee be fixed as 1% of gold content at Euro 10,000/kg so 9ct Euro37.50/kg, 18ct Euro75.00/kg.

GRTU would like to have this proposal accepted and placed in writing. GRTU is flexible on the alternatives to the current system so we are ready to discuss other alternatives. GRTU however feels the current fee is exorbitant and needs immediate revision.

4. Annual Fee.

Currently sponsors or manufacturers who stamp the finesse mark pay an annual fee of LM100 per annum. This is excessive when today we pay LM30 per annum trade license for a retail outlet in Republic Street. We are asking for the removal of this annual fee (nb 29 people pay it) and have just a LM100 Registration fee for registering the hallmark.

GRTU would like to have this proposal accepted and placed in writing.

5. Destructive Testing.

The Office of the Consul MUST INVEST in new technology such as X-Ray Analysers (XRF) so that the Consul can carry out non destructive testing and not destroy the article without compensation just to test the finesse of that unique item. When 100 items are produced it makes sense to choose one at random and do assay by cupellation (destructive) but when a unique item is on display it makes no sense to destroy the item to check that it is of the required finesse when non destructive tests are possible and accurate enough.

 

The Consul will still retain the right to do destructive testing, and then take legal action if the item fails the first non destructive test.

Should the consul not invest in non-destructive testing GRTU believes a sensible solution must be found

6. Publication of database.

Internationally lists of identification marks are published so that retailers can check the marks of items they purchases for retail to ensure that they are registered and valid. The Consul holds that this cannot be done in Malta due to Data Protection.

GRTU feels that the protection of the consumer and retailer is more important and therefore a register of ALL identification marks registered in Malta should be published.

7. "FAIR" Implementation.

The office of the Consul, as Regulator in Malta, should issue summary guideline of the basic legal requirements for the sale of jewellery. These for example include items exempt from hallmarking, labeling of items, hallmarks etc and inform all retailers registered and also other retailers not registered as jewellers that still sell gold and silver items e.g. souvenir shops, bridal dress shops, pharmacies and street hawkers. GRTU will give its full support to the consul and help in circulating the information. GRTU too often finds retailers that are totally unaware of this information and we believe it should be the prime aim of the Consul, as it is of the GRTU, to see the retailers know their legal obligations. This to provide better consumer protection as well as a fair implementation.

We urge the consul to continue with the market surveillance and officially warn shops found in breach of the regulations to remove all items from sale and regularize themselves within a given time period. We strongly believe that surveillance should be carried out less aggressively without the need for CID and taking them to court on the first default. This system worked perfectly in the Euro Change Over in 10,000 shops; we see no reason why it should not work in 200 shops. After this first warning the Consul can then proceed with taking the person to court if he persists in breaking the law.

8. Price Control

Presently if an item placed on the shelves for sale has its price not or not completely visible the retailer can be taken to court. While appreciating the importance of the consumer being able to see the prices without having to ask for it, we believe that in the Gold and Silver market this is not always possible.

Retailers ensure that wherever this is possible they make their utmost to display the prices next the product however there are instances that the price tag is three times bigger than the item or it is brand policy to show the brand next to the product and not the price.

GRTU would like to discuss the matter and find a sensible solution for these cases.

9. Working practices

We recommend that working practices are established for the grey areas in the sector e.g. Hallmarking of diamond jewellery where the gold content is rather insignificant in proportion to total value, Gold watches, Luxury high end jewellery where the "local" hallmark would diminish the international value of the product. Fore example some brands do not hallmark their items in the traditional way but by laser inscription of brand name, finesse and serial number.

 

 

 

Vince Farrugia, Director General of GRTU, is presenting to Government a package to help boost the current low level of consumer spending that is effecting many shops, bars, restaurants and other outlets of direct consumption. One main suggestion is the issue of an additional bonus which would in fact double the normal salary bonus received by all workers in June. While the June bonus is paid for by business owners, the second bonus which GRTU is proposing should be given out in May, will be paid all by Government .

The impact of doubling the mid-year bonus will have a direct impact on the level of spending during the time when tourism appears to be low according to current levels of bookings and at a time when additional incomes through second jobs and part-times jobs is very low. The recent survey conducted by GRTU measuring current consumers` purchasing power indicate that an additional boost is essential. When considering the effect this will have through income tax, VAT and other tax revenues, the net outlay of Government will not be exceptionally high. "Yes, the Maltese economy also needs its own stimulus package and it is best that we start by stimulating the consumer" Vince Farrugia said.

 

GRTU, following complaints received from its members, has written to the Ministry of Finance and the Parliamentary Secretary for Public Dialogue, on the basking that is taking place in Freedom Square. Below is the letter that was sent.

After many long discussions between the Government and GRTU, with the help of the former Parliamentary Secretary Hon. Edwin Vassallo, the Baskers` Law was drafted and legislated. The new law makes it abundantly clear that no basking may be done in Freedom Square and no sale of goods, services or other sales of any other nature can take place. GRTU has insisted all along that sales from temporary stands under whatever title, cause grossly unfair competition to shops in the arc who pay rents, licenses and employ people on a regular basis and await particular occasions to cover costs of days when business is poor.

GRTU has also argued that activities like time share and pressure selling as being conducted by Go and Vodafone, should not be allowed in the whole of the Valletta commercial centre. The uncontrolled use of Freedom Square for special vending opportunities has had a grossly damaging effect on shops in the shopping complex, so much so that many are now vacant and no one seeks to rent.  

In November 08, Vodafone were given an encroachment to open a vending stand in Freedom Square by the Valletta Local Council. One fails to understand under what authority was this license given. Shop owners pass through much bureaucratic delays and costs to obtain licences, yet now it seems that some find all sorts of excuses to obtain licenses which should not be available to anyone. The reason given, that Go and Vodafone were sponsors to occupy of an Arts Event that ended in January 2009, is very puerile.

Valletta Local Council has no right to dispense trading licenses and encroachments in complete disregard of laws and economic impact affecting normal business operations in Valletta.