A more positive attitude might help

Published: December 17, 2008 at 4:46am

When did Maltese business-people start believing that merchandising doom would help sales? Every time they make an announcement of this nature, I wonder what on earth it’s meant to achieve. Is it meant to make us rush out and spend more in their shops and restaurants? Is it meant to make us take pity on them because if they can’t have profit then pity will do them fine? Is it meant to…..what?

Communication in business is done for a purpose. It’s done with an end in mind. So what is the end or the aim here? I better the GRTU itself doesn’t know, and would be hard put to answer that one. I’m beginning to think that it’s full-time employee/s need to justify their existence and their salary, like that man Zarb at the GWU.

Any clear-thinking person can see that what these people need right now is to sell more, therefore their every action has to be directed towards this end, and anything that undermines that end must be avoided. So why are they actively encouraging a scenario that makes them sell even less? Maybe they’re not that great at business, after all, which is why they aren’t selling enough in the first place.

And I really, really love this bit:
“When asked what they intended doing in the near future, 56 percent said they would ‘remain the same’ while 17 percent said they would reduce the size of their business. Six percent said they would close down. Sixty-seven percent said they would retain their workforce but 25 percent said they would lay off people. Only 8% said they expected to increase the number of their employees.”

Notice that zero per cent said that they would see what could be done to improve their practices/service/products/marketing/innovation or diversify to attract more business and improve sales. That just about says it all. And incidentally, I’m not nocturnal. I’m in a different time zone.

The Times, Tuesday, 16th December 2008 – 15:48CET

71% of businesses expect downturn in 2009 – 62% already seeing turnover drop

A GRTU business performance survey has found that 71 percent of respondents feel 2009 will be worse for business than this year, with 41 percent of them saying they do not expect the economy to grow. The survey results, presented at a GRTU conference on preparing the country for the challenges ahead, found that 62% of respondents saw their turnover drop by between 10% and 30% in the second half of this year compared to the first six months, while 22 percent saw no change and 16% reported growth. Just over three-fourths said their profits had slumped by between 10% and 30% during the same period. Those who reported a drop in profits blamed their situation mostly on rising costs and a slowdown of the economy, although 12% also complained of too many businesses opening in their sector.

When asked what they intended doing in the near future, 56 percent said they would ‘remain the same’ while 17 percent said they would reduce the size of their business. Six percent said they would close down. Sixty-seven percent said they would retain their workforce but 25 percent said they would lay off people. Only 8% said they expected to increase the number of their employees.




41 Comments Comment

  1. Xaghra says:

    When was the last time you heard a GRTU member, or any businessman for that matter, say they had experienced a good year or say they are experiencing a good year or predicted they will have a good year? It still hasn’t stopped them having the most expensive 4-wheel drives around….and good for them too because they take the risk. But please spare me the martyr syndrome.

    [Daphne – They don’t say they’ve had a good year in case the Inland Revenue come calling, and because of l-ghajn.]

  2. Peter says:

    On the following text, what seems to be going on here is some sloppy reporting and writing:

    “When asked what they intended doing in the near future, 56 percent said they would ‘remain the same’ while 17 percent said they would reduce the size of their business. Six percent said they would close down. Sixty-seven percent said they would retain their workforce but 25 percent said they would lay off people. Only 8% said they expected to increase the number of their employees.”

    For a start, the single paragraph quite clearly contains the answers to two different questions – only one of which evidently queries business owners on their intended commercial strategies _ although it is not revealed what the original question was or whether it was open-ended.
    The second, implied question (answers: 67 + 25 + 8 = 100) seems a straightforward attempt to chart growth prospects for Maltese companies. Revealing how you intend to resize your workforce, if at all, is a useful indicator of the current health of businesses going forward. It is pointless to ask company directors to sweeten their forecasts, not least because that would undermine the government’s ability to prepare accordingly.
    As to the first question, the data on the responses are partial and inconclusive, not least since the answers of 20 percent of the surveyed subjects appear not to be included. The information that we are given does suggest a worryingly passive stance. If anything, that is what should be of concern, rather than how solar the disposition of businesses owners might be. If the business community is glum, it may have something to do with their balance sheets, and there is no wishing that away.
    But the government has over the years invested substantially in higher education, which has indisputably yielded some terrific results. When it comes to the private sector, however, a climate of complacency reigns supreme. The inability of small business owners in particular to adapt to challenging times as domestic economic development begins to level off cannot but be a source of distress.

  3. Mario Debono says:

    Daphne, we are certianly not merchandising Doom, but things are very very difficult. People are “turtling”, that is, they are retreating into their own shells. No matter what you say, or whatever anyone says, when one takes into account even online sales, sales are down, by a huge amount. My businesses are normally busy at this time not because of Christmas, but because people get sick in winter. For the first time ever, since i have been in business, pharmacy medicine sales are down. Drastically. Despite being an eternal optimist, to the point of idiocy sometimes, I reluctantly predict that next year, all consumer /retail businesses, advertising will suffer as well. Much as I hate to agree with anyone surnamed Fava, I have to agree with him on this one. People are afraid, and are hoarding their cash to pay energy bills. Inevitably, prices will rise across the board, because Malta is an open economy and we import almost everything. If we don’t export services and goods in excess of what we import, we are in for a rough time.

    What we are noticing is that a substantial number of people are exporting part of their business abroad. I don’t blame them. Malta is a good country to learn your trade in, because the intense level of competition makes businessmen competitive and combative, and when we go abroad, as I have done, we find things easier because markets are bigger and not as competitive as our microcosm here. Malta is simply too small to register a decent profit nowadays, and our civil service does not help matters, because all they think about is squeezing the middle class with little or no interference from politicians, because they win them over.

    We have no problems publishing the survey questions. I will see to it. They are simple questions requiring a simple answer.

  4. Mario Debono says:

    http://www.grtu.net/data/images/Survey_Results/messages%20to%20goverment.pdf

    THESE ARE COMMENTS LEFT BY PEOPLE WHO PARICIPATED IN THE SURVEY. They make interesting reading.

    Daphne, business in Malta is not just made up of the Mizzi’s and Gasan’s of this world, or the people who can afford to pay for advertising in the Sunday glossies. It’s about time you realise that the guy next door is also in business. But then again, he might be too small and too disposable to matter for some people.

    [Daphne – Please don’t be patronising, Mario. This is the milieu in which I grew up and it’s the only one I understand inside out. The point I’m making is that every action and statement must have an aim – in this case, the aim of improving your situation. Any sensible person can see that shouting about ‘pain’ is going to make the situation worse, not better, causing people to draw in their horns even further if that is really what they are doing, rather than buying what they want and need elsewhere. That’s my perspective as a seller. Now this is my perspective as a consumer: I am dreading coming back to Malta and having to go to the shops after my experience here in Toronto, where EVERYONE IN EVERY SHOP says ‘Hi there! And what can we do for you?’ the second you walk through the door, where every shop assistant, from the youngest with a nose piercing to the oldest in an elegant suit, treats you with old-world courtesy and perfect, perfect manners, where everything is beautifully displayed and well-priced, where they behave as though they are really, really grateful that you walked through that door. They’ve got it; we haven’t. I’m spending a lot of time in shops watching how they do it. Overhead on the shop-floor at the big Guess store on Dundas Square yesterday evening, one shop-assistant aged about 20 to another aged about 18: “Make sure everyone is looking after the customers, OK? There’s a lady over there and no one’s looking after her.” I’ve really chosen where to shop in Malta, and I won’t go anywhere else. In general, I can’t stand the attitude, the shop-layouts, the lack of merchandising creativity, the boredom that hits me the moment I walk over the threshold. Have Maltese shopkeepers ever heard of Mary Portas? Boy, do they need her advice.]

  5. Mario Debono says:

    [Daphne – They don’t say they’ve had a good year in case the Inland Revenue come calling, and because of l-ghajn.]

    Facetious at best.

    [Daphne – Yes, it was. But let’s be honest, when was the last time the GRTU had anything positive to say? Or have GRTU-represented businesses been doing badly since 1987?]

  6. Mario Debono says:

    Daphne, I wasn’t patronising you….well, maybe I was trying a little…. I also grew up in businesses. But i can tell you that our aim is to make a several points 1. Doing business in Malta has become intolerable, because you have the Govt. as a partner demanding flesh even when its not there, with all the red tape, all the reporting, audits, fees, MFSA fines for every misdemeanour, customs officials demanding under the table payments, MEPA permits stalled because of envious neighbours, ect. GRTU does not just represent retailers. You have no idea the incredible stories we hear, and try and help people with. Tax compliances, VAT inspections where the businessman is treated like a criminal, demands for payment from Govt. when in fact it is Govt who is in default, Ex ufficio inspections that turn up nothing but where the Govt still demands payments because some civil servant does not believe the investigation, over reading of water and electricity bills, businesses that have fallen on hard times and need winding down without bleeding, businesses that are stalled due to some long running court case, ….the list goes on and on. Some of these end up in tragedy. I have known people attempt suicide, and some succeed, because of harassment by tax people and call-ins from the banks. What about the hegemony of the dominant players in the market against the smaller supermarkets who parallel import products. One company had trouble with the bank because it started parallel importing a well known business’s products and selling them at a cheaper price. I will give you one guess that the bank chairman was in this case.
    The bloody list goes on and on. So no, my dear Daphne, and I am not patronising you, its not just retailers who are facing the crunch. We are not a union of shopkeepers, although we started off as one. We are a chamber that just happens to represent 7000 small businesses, and they are, for the most part, suffering. As are most businesses in the UK, US and the EU. We are not crying wolf, and where there was a positive climate we have often said so. But things are really, really bad, and it’s not our habit to hide things. If it was, I wouldn’t even be defending GRTU.
    Our message to Government is not one to put money into people’s pockets. Its consistently one where we are asking the Government to embark on a series of much needed national projects like an underground transport system, new roads, new yacht marinas and restoration of the port infrastructure and fortifications, retraining of workers and in general foster business by reducing the administrative burden. That’s our message out there. The same message goes to banks. We told them not to be averse to risk, because that’s a fearful thing, and fear breeds fear.
    I now come to the attitude of workers in shops. You are right. From the outset, i can tell you its so difficult to get workers who respect their client. In my establishments, the client is King and is Always right, even when he is not. Sadly, many businesses do not take the time to train their staff in customer relations. Now I believe this is something innate, and workers should realise that their job depends on it. Too many workers resist training in basic manners and too many shop employees are thinking more of what they would do after they leave work, than in actually serving the customer and being sensitive to his/her needs.

  7. Alex says:

    Perhaps it is worth investigating why Daphne chose to pick on the GRTU for moaning? Perhaps she is suggesting the GRTU are complaining to gain some political mileage? Perhaps she is shooting them down for that in order to weaken whatever mileage they may gain? Just a thought. Perhaps I’m tired.

    [Daphne – The GRTU should ask itself why the Chamber of Commerce is taken more seriously.]

  8. D Fenech says:

    Let’s leave business out for the moment. What about these people? Are there some Income tax people going after them too?

    http://www.illum.com.mt/2008/12/07/t1.html

    [Daphne – Oh, for crying out loud.]

  9. H.P. Baxxter says:

    Could it be that Malta has too many shops selling too much of the same thing? (i.e. computers, Italian shoes and “high-street” “fashion” clothing).

  10. Jane says:

    The office I work for depends mostly on the construction / property industry, enabling me to see things from a different angle:

    Analysing sales made over the last few decades, it is quite easy to see when Labour was in power, because that was when sales dropped drastically, coming almost to a standstill.

    Any further analysis is probably unnecessary.

    [Daphne – Gosh, I was about to point that out to Mario Debono and Vince Farrugia. The worst years ever (since 1987, that is) were 1996 to 1998, when the economy literally ground to a halt, unemployment sky-rocketed, and the country was in turmoil as our prime minister thrashed out his CET. Remember that circus? Advertising just died, which is the signal marker of an economy in trouble. And who made that mess? Ah, yes – Vince Farrugia and the GRTU, with their agitation and marches and mass demos against VAT in 1994, and their ‘no to cash registers’ collusion with Sant, which brought him disastrously to power and derailed Malta’s EU membership project. The GRTU has a credibility problem as large as Joseph Muscat’s.]

  11. Amanda Mallia says:

    Mario Debono – “My businesses are normally busy at this time not because of Christmas, but because people get sick in winter. For the first time ever, since i have been in business, pharmacy medicine sales are down.”

    Are you trying to insinuate that people are avoiding buying necessary medicine, Mario, or that maybe they are getting less sick than they normally do at this time of the year? Pull the other one!

    Could it not be the case that doctors – for whatever reason – have shifted to prescribing medicinals other than the ones you stock/import/distribute?

  12. Amanda Mallia says:

    [Daphne – The GRTU should ask itself why the Chamber of Commerce is taken more seriously.]

    To start with, a man in a wig can never really be taken seriously. (Not that I mean to spark off a discussion about wigs.)

  13. Amanda Mallia says:

    H.P. Baxxter – “Could it be that Malta has too many shops selling too much of the same thing?”

    Have you been to The Strand, Tower Road or Bisazza Street recently? – They seem to be over-run by jewellers’ shops and shoe shops more than they ever were before.

  14. Jane says:

    Daphne – Bingo! It was quite amusing doing the analysis recently actually, because yes – sales rocketed in the late 1980s, only to plummet drastically in 1996-1998. As you may have guessed, they picked up again after 1998.

    Election time (also known as a time of uncertainty) is also a time when this can be seen in most lines of business.

  15. Amanda Mallia says:

    Mario Debono – Another thought just crossed my mind …

    In the bird-flu epidemic scare of some two years ago, people – especially people like myself who had very young children at the time – were panic-buying unnecessary medicines. (I now look upon it as scare-mongering sparked-off to fatten some people’s pockets. I must admit that despite my very honest and trustworthy GP trying to convince me that buying certain medicine “just in case” was completely unnecessary, because there were adequate stocks at St Luke’s if they were required, I too went ahead and spent quite a bit just to have it handy.)

    After such hype, people probably still stocked up on some unnecessary medicine the following winter. One year down the line, maybe they are a little wiser – Hence, possibly, the drop in your sales.

  16. H.P. Baxxter – “Could it be that Malta has too many shops selling too much of the same thing?”
    This has always amazed me. I can`t understand how any one knows there are lots of jewellers etc and yet goes ahead and opens up yet another one. Does he really think he is going to attract new business and not that the existing business is going to be shared between more people. Is the profit really so big?
    Take St Julian’s, near the ex-HSBC: some 15 years ago there were just a couple of take aways – now there are more than twelve. Tourism and local custom surely hasn’t increased by 6 times.

  17. Mario Debono says:

    @Alex. Perhaps you are right, my friend.

    [Daphne – Mario, it is plain to most that it is the GRTU which is seeking political mileage, as always, having been hijacked by those with narrow sectarian interests.]

  18. Mario Debono says:

    Jane, I have been in the property / construction business since I could say aaaa. Yes, there were some hiccups. The early 90’s perhaps. And the Fredu years. Not as bad as at the present moment, however. If whatever God you work for is selling property, he must be unique.

    [Daphne – Property sales have ground to a halt in all but the uppermost segment of the market. This is not because people don’t have money or have lost their jobs. It is because they are afraid to take what they now see as the RISK of a loan, because of all this yada-yada-ing about the storm on the horizon. Also, the market may be correcting itself because of severe over-pricing in the low to mid-segments, where ugly, badly designed and poorly finished flats are the order of the day. For god’s sake, you don’t take a decision to buy a house based on the size of your electricity bill next month. That’s a factor that might affect the purchase of consumables, but not of property. That’s what I mean when I ask what in heaven’s name the GRTU is trying to achieve by contributing to the general atmosphere of negativity. Commission your surveys for your own private information – that’s what businesses do elsewhere unless they are publicly-listed companies and obliged to issue profit warnings, which no GRTU member is.]

  19. Mario Debono says:

    In 1996, GRTU was concerned at the way the government implemented VAT, not at VAT itself. It was a question of a hard headed Minister imposing on businesses without consulting their representatives. It lost the PN a lot of votes. But it thought the country a lesson that confrontation is only to be used as a last resort. Daphne, perhaps you need to be reminded of the instrumental role played by GRTU in getting acceptance by all to join the EU. The personal efforts of Vince Farrugia and the rest of the council to meet, convince and smooth out problems that businesses may have had with joining the EU are well known to government. A partnership between GRTU and the government was forged that won the day, and is still winning. Watch this space. We have some surprises in store that I daresay will maybe change your outlook on GRTU. Do visit us one day. We relish discussion.

    [Daphne – Don’t rewrite history, Mario. I was there and writing about it, remember? The GRTU was objecting to VAT itself, so much so that Sant promised its members that he would do away with those cash registers they hated so much, and when he won, some of those machines were dragged around the streets. Yes, I know that Vince Farrugia and the GRTU worked for Malta to join the EU post 2000, but that does not erase from my mind – or the minds of others – the fact that he and his organisation derailed all that in 1996, with consequences that would have been permanent had not Sant’s government collapsed by a fluke in 1998. I’m sorry, but I’m not big on Damascene conversions. The government does not have a partnership with the GRTU; the government feeds the unpredictable lion so that it doesn’t bite like it did in 1994, 1995 and 1996, with horrible consequences for the country.]

  20. cikki says:

    To Amanda Mallia What about bathroom shops,
    furniture shops (bedroom suites etc) and tacky gift
    shops. I used to wonder how they made money when things
    were going well. The attitude seems to be that if
    someone opens a shop and does well, a dozen others
    jump on the band wagon and open identical shops, so
    the money doesn’t go to one but thirteen. Then they
    moan that they’re not making any money.

  21. Cellinu says:

    1. Daphne, as for your comment “But let’s be honest, when was the last time the GRTU had anything positive to say? Or have GRTU-represented businesses been doing badly since 1987?” The answer is 2006. Have a look at : http://grtu.net/data/images/Survey_Results/2006-07_survey_presentation.pdf

    That year we were told that GRTU is being politically biased!

    2. Secondly the surveys done by GRTU are not intended to put forward any message except the state of small business in the period surveyed. So, Daphne this answers your question … “Every time they make an announcement of this nature, I wonder what on earth it’s meant to achieve”. Would you rather have it that we doctor the results to show a feel good factor and increase sales? Or should we say the truth and nothing but the truth? These surveys are done every six months and the results are published exactly as they come in.

    3. The confusion in the Times report is due to the paper refusing to publish the important charts such as the profit and future ones. Interestingly they had published the charts for 2006!

    4. Daphne, as for your comment “I’m beginning to think that it’s full-time employee/s need to justify their existence and their salary, like that man Zarb at the GWU.” Let me assure you that except for the people who do the phoning the data is compiled and presented by people who do NOT get paid.

    5. As for your “And I really, really love this bit:” comment the confusion is due again to reporting intended to confuse. This is easy to clear. Just bother to look at the charts at : http://grtu.net/data/images/Survey_Results/grtu%20jul-dec2008%20survey.ppt

    6. Let me tell you a bit about what was said at the conference. Both Prof. Scicluna and Prof. Gordon Cordina fully acknowledged that we are heading for tough times and the government should come up with schemes to help business. The Foreign speakers Birgit Fular, and Malosse both agreed that business in Europe needs help. Lets leave Gavin Gulia out because of his obvious political agenda. So, basically everyone agrees that there is a problem except of course Tonio Fenech and the PM. Prof Scicluna said “the economy is like a patient in the ITU, it needs oxygen because its sick and it needs it when it goes into the ITU not when it dies!” So, during the conference we were in a room with around 250 businessmen, several people from the EU and the professors all agreeing that there is a problem. We also had the 250 people who responded to the survey saying that there is a problem too. So, shall we believe all theses people or are they all preaching doom and gloom for the hell of it ?? Or to justify their pay ?

    7. Did you see ?: http://www.timesofmalta.com/articles/view/20081217/business/hsbc-sets-up-euro-100m-credit-fund
    So even HSBC agree that there is a problem and they are doing something about it. Should we dispel HSBC by saying that they are preaching doom and gloom too ?

    8. You claim that the Chamber is taken more seriously! I don’t know from where you got this one. How do you gauge credibility ? Don’t you think that the number of members is a good gauge ? Would you be part of an organization that you don’t believe in ? Or shall we say that all the members are labour? or are they all stupid ? What ?

    8. Daphne as for your comparison to shop owners or sales people in Malta with Toronto I think like in everything else there are good sales people and there are bad ones. Or are you suggesting that we should we believe that Toronto sales people are all good and Malta Sales people are all bad? Should we take your comment as scientific evidence while at the same time disbelieving the GRTU survey because is pure conjecture ? I too have traveled and I agree that merchandising is lacking here in Malta but this could be due to the smaller population and catchment area per shop. GRTU does see that the employees in retail stores need to be trained better and this is why it has been organising courses for a number of years together with CSQM.

  22. Mario Debono says:

    Another point of credibility. GRTU did not have to merge with anyone to survive, Chamber of C and FOI did. Otherwise they would have been bankrupt in all senses, both as regards membership and finances. Or did that little fact escape your attention, Daphne?

    [Daphne – They merged because they have more clout like that, and because separating commerce and industry no longer makes sense in the 21st century. And yes, the merged organisation has more credibility than the GRTU.]

  23. Mario Debono says:

    To start with, a man in a wig can never really be taken seriously. (Not that I mean to spark off a discussion about wigs.)

    Well, thank god you seem to be in a minority on this one Mandy.

    [Daphne – Why thank God, Mario? Wigs on men detract severely from their credibility, where it counts most.]

  24. Mario Debono says:

    “After such hype, people probably still stocked up on some unnecessary medicine the following winter. One year down the line, maybe they are a little wiser – Hence, possibly, the drop in your sales.”

    Some other salient facts: the bird flu medicine was purchased from a prominent Chamber member, all big importers are members of both GRTU and Chamber of Commerce. At that time, it was a prudent move, because if bird flu really struck us, you would have needed that medicine. There is more I can tell you on that, but it will have to be on a one-to-one basis, Mandy!

    As regards OUR drop in sales, be they mine or Fava’s or anyone else who owns a pharmacy, you can’t attribute it to anything regarding what we stock. I stock everything, as required by law, and so does every pharmacy.

    The simple fact is that people are afraid and are hoarding cash. there is only so much you can buy off the internet. Most people prefer the security of buying value goods from Maltese retailers because they want to have a point of reference if something goes wrong. I was in Sliema yesterday all afternoon. It was bloody dead. I was tempted to sms you people, but I just didn’t feel like it. I pity the retailers, who are well stocked and desperate.

    [Daphne – And why are people afraid and hoarding cash? The constant drum of bad news. That’s what I’m telling you, Mario, that your organisation is helping create this situation. All we needed was the Office of the Prime Minister’s thrifty decorations made from scrap now, to really send out another negative message. The irony is that those decorations cost a hell of a lot more than going to Tal-Lira and buying some baubles, when you factor in all the man-hours of the maintenance staff diverted from their core duties and roped in to make them. What we needed there was some leadership by example, along the lines of look, don’t be extravagant, but spend all the same, because not spending is disastrous for the economy. For the prime minister’s office to put up homemade decorations at this point is really the worst possible message.]

  25. P.J. Camilleri says:

    It is amazing how people prefer living in clouds or bury their heads in the sand.

    The result of the survey carried out by the GRTU concur with what is happening abroad. I hope that no one is trying to suggest that the recession in the EU, USA, Japan and most of the world and the international financial crisis have been brought about by the GRTU. If the countries we rely upon for our exports and tourism, are facing difficulties, then it is no wonder that we shall be hit. After all isn’t it true that we already have manufacturing industry on short weeks?

    Isn’t it true that HSBC Bank has thought it fit to put up a 100 million Euro fund to help out business in the forthcoming year? The last thing business needs is to predict gloom in the economy, let alone instigate it. However the truth has to be said and the message of the GRTU is very simple. It is asking Government not to exacerbate an already precarious situation.

    [Daphne – There isn’t a recession in ‘most of the world and in the EU’ as you put it. There is a recession in those countries hit directly by the impact of the financial crisis, which led to people losing their homes and their jobs, and so having no money to spend. A secondary cause in the US is the failure of the auto-industry as a result of high fuel prices and environmental concerns, which knocked the bottom out of the market for, especially, SUVs. The Toronto Star reported yesterday that as many as half a million jobs may be lost in Ontario alone, if the auto-manufacturers close down their plants. In countries where no major banks or financial institutions have collapsed, putting hundreds of thousands out of work, and no auto-manufacturers have shut down their plants, the causes of recession are going to be two-fold: indirect (weakened tourism, in our case) and self-inflicted (people drawing in their horns and not spending even though they have money). The bottom line is that unemployment in Malta is DOWN not up, and that people are still earning. They are just not spending. Business organisations in Malta are calling on the government to ‘do something’ to help recovery. Recovery can come only through consumer spending, therefore it follows that any measure or statement that contributes to fear of spending is bad, while measures that encourage people to spend are good. Hence, fear-mongering by the GRTU is bad, as was the prime minister’s office’s decision to put up homemade decorations this year, which was a bad example to the people.]

  26. Aidan Zammit Lupi says:

    @ Mario Debono
    Too many workers resist training in basic manners and too many shop employees are thinking more of what they would do after they leave work, than in actually serving the customer and being sensitive to his/her needs.

    Sack them for incompetence if they refuse to learn. Otherwise it’s the management’s fault for tolerating this behaviour.

    Each time I visit Malta I too am amazed by the lack of courtesy in most shops and other businesses. I have often wondered where the “friendly Malta” definition came from.

  27. D Fenech says:

    @Amanda Mallia
    I guess you did not read the link I sent.

    What Mr Debono is saying just confirms the article.

  28. D Fenech says:

    Daphe, what are your comments now about illegal immigrants after what happened to this gentleman?

    http://www.timesofmalta.com/articles/view/20081217/local/maltese-people-getting-scared-of-going-to-marsa-police-inspector

    [Daphne – God forbid we Maltese should be judged on the actions and behaviour of the pimps and drug-traffickers who helped control London’s underworld.]

  29. “When asked what they intended doing in the near future, 56 percent said they would ‘remain the same’ while 17 percent said they would reduce the size of their business. Six percent said they would close down. Sixty-seven percent said they would retain their workforce but 25 percent said they would lay off people. Only 8% said they expected to increase the number of their employees.”

    It’s called a business confidence survey. Daphne, and you’ve never opened a foreign one. You should read a British CBI report or a Japanese Tankan suvey. The Maltese survey reads like a party next to those.

  30. Mario Debono says:

    [Daphne – They merged because they have more clout like that, and because separating commerce and industry no longer makes sense in the 21st century. And yes, the merged organisation has more credibility than the GRTU.]

    Sorry, Daphne, you are wrong there. They merged because the FOI and the Chamber were taking a hit as regards membership and finances. It’s a good thing that they merged, mind you. I just wish they would stand up to the politicians and the civil service a bit more. Let’s hope so. I was at a party yesterday (as was your significant other) and this was discussed.

    As regards credibility, well, what can I say? GRTU deals with governments, not the likes of us. Our credibility with the government is not in question here.

  31. Mario Debono says:

    @Robert Zammit. Spot on, my friend. GRTU has very close links with the CBI in the UK. We co-operate on many issues. They are truly very afraid of the future, and they tell us it is the weakness of the British pound that is keeping retail going, because hordes of tourists are going to the UK and snapping up everything they can lay their hands on.

    I am, as is GRTU, confident we can weather this storm, as long as everyone does his bit and no one buries his head in the sand.

    [Daphne – Has the GRTU found out how many of those hordes of tourists are Maltese, spending in London shops instead of Malta?]

  32. Jes Farrugia says:

    Daphne, why do you keep insisting that it is the GRTU that is creating ‘the recession’?

    Try getting your head out of the sand and realise that most news is ‘black’, we are fortunate enough to be able to access news from anywhere today, in real time. People are informed of what is going on in this country and also in the rest of the world. We all know that there will be repercussions to the problems overseas, so why keep blaming the GRTU – this seems very similar to a political scapegoat!

    The hard cold fact is that if the NP was more careful in handling finances we would be in a better position to cushion this period. Now, don’t go blah blahing about not having a power station etc, because if the NP was running a commerical organisation the whole of them would have been kicked out long ago!

    The GRTU are just trying their best to protect their members interest, this is the whole concept of a union or association. For sure, some things have to change drastically, shops will close, prices will (should) go down as the economy realigns itself, however, there are tools which the governmnet can still use.

    [Daphne – Did you work on those exercises called ‘comprehension’ at school? Or had they stopped doing it by the time you entered the education system? I didn’t say that the GRTU is creating the recession. This might come as a surprise to you, but I do know the causes of recession in theory and practice, and also the history of the major recessions of the 20th century. I am saying something quite different: that when people have stopped spending, those who are selling should refrain from any measure that discourages spending even further, even if this means keeping a zip on it and not putting out any more negative messages. There are enough people damaging GRTU businesses with negative messages; the GRTU doesn’t have to jump on the bandwagon. Of course, if there were mass unemployment, and lay-offs in the news every day, it would be a different matter, but as I keep repeating, to no avail, unemployment is actually down, not up. In other words, there are more people in work this year than there were last year. So you cannot make a straight comparison with Britain or North America. If you want to carry on frightening sales away, go right ahead – only rest assured that the reason people are not spending is not because they have lost their job, but because they’re hoarding the money instead. This means that the money is there, so what you should be doing is talking people into spending it. This isn’t rocket science; it’s just clear thinking. And has it occurred to any GRTU shopkeeper that perhaps people resent spending money on full-price items when they know there will be heavy discounts on Boxing Day, and when they know that London shops are discounting everything already?]

  33. Jes Farrugia says:

    Helloooo…..’the recession’…. I thought you knew the meaning of inverted commas (grammar)….but anyway!

    The point is that the GRTU is trying to get the govt to put some business friendly measures in place. On the other hand, yes, it is time some shops closed down, prices have to go down – in short – more value needs to be added! This is a natural way of the market righting itself. Unfortunately politics and socalist policies get in the way of the market.

  34. stephanie says:

    I do not usually post ,preferring to read all the comments and articles. However I feel very strongly about this issue. I think the GRTU should stop moaning and blaming everything except themselves! It is either the recession, the energy bills, the super 5 lottery….their list of excuses is endless. The truth is people are now getting more savvy regards how and from where they buy. Internet helped us realise that, more often then not, we are ripped off blindly here in Malta. I am not generalizing but yesterday I was in Sliema and prices are high….no use mincing words here, so how do these gentlemen expect us to go buy from their shops when it is so clear that with a few clicks one can buy decent stuff and not feel cheated every time? Franchise shops here sell clothes and jewellery so much more marked up. I know, Malta is a small market, but then, none of these shops ever closed, even with all the competition around them. When will we see adjusted prices now the sterling has hit such a low? Everyone was quick to point out lower oil prices so should not one expect lower prices on goods imported from the UK? No wonder a lot of Maltese are trying to get to London to buy; even the cost of the air ticket will be more than justified. I for one would prefer to support local business and there are some which I frequent, but these are few and far between. I think people do have money, otherwise they would not go to the UK even with such slashed prices. It’s just that they have become more wise when it comes to spending, so I really think the GRTU should stop moaning and take a good hard look at itself- I’m sure that it will soon realise where the real problems lie.

  35. Mario Debono says:

    Unemployment rises by almost 300 in a month
    Unemployment grew by almost 300 between October and November but dropped slightly when compared to November 2008, figures issued today by the NSO show.

    It said that the number of people registering for employment under Part One of the unemployment register at the end of November was 5,900 compared to 5,634 in October and 5,882 in November 2007.

    With regard to persons registering for work in the 12 months to November 2008, the number of men increased by 150, whereas the number of women decreased by 173. Between November 2007 and November 2008, persons who had been registering for work for 53 weeks and over decreased by 197.

    Among men, occupations related to elementary duties and trades were the most common, whereas women tended to seek jobs which were clerical or service-oriented.

    Daphne…..what did you say about unemployment? Can you repeat that please? I didn’t hear you!

    [Daphne – Mario, by sending in these numbers you just prove the point that unemployment is not going up, unless your friends at the GRTU think that having EIGHT more unemployed persons in November this year than we had in November last year is the reason their shops are empty this Christmas.]

  36. Cellinu says:

    @Stephanie

    Just because you go to the UK to do your shopping and perhaps have a few friends that do the same is not scientific evidence that its what everyone is doing. GRTU’s claims that the economy is not doing well and that sales are down are based on a survey of 250 businesses from all sectors. With your reasoning we should see a sharp increase in people going to the UK. To my knowledge there is no such evidence. Furthermore you have to rule out the current very low value of the sterling. Many Maltese shops import their stocks from the UK so we should see a reduction in their prices. Thing is, the stocks they have for the Christmas period where ordered at pre-sterling crash prices. Also its not a question of ‘if people have money’ but the question is ‘Are they making money ?’ Most people tend to spend only if they are earning and prefer to leave what they have saved.

    Finally I don’t know why you people cannot except the results of a survey with a sample of 250 which is a sizable one even if it was for all Malta let alone the business community. In 2006 when the survey said that business was doing well it was the Labour side that was bringing the same arguments and not accepting the survey results.

    Again, did you all notice HSBC forking out 100 million euros to help businesses ? The UK reducing VAT ? All the economists in Malta preaching doom and gloom? Factories on a four day week? Is it only GRTU seeing there is a problem?

    [Daphne – Nobody’s questioning the results of the survey. We can see that shops are empty. But I’m questioning the motivation behind all the publicity the GRTU is giving to the results of the survey. They don’t seem to realise that there’s one hell of a difference between people failing to spend because they’ve lost their job and don’t have money and people failing to spend because they’re afraid, are being encouraged to be afraid (by the GRTU among others) and keeping their money in the bank instead.]

  37. John Schembri says:

    People are not spending much because they do not know what the water and electricity bill is going to cost them.
    Nowadays ,Christmas shopping is left for the last weekend before Christmas and during the factory/office shutdown.

  38. Mario Debono says:

    Daphne, I dont have friends in GRTU. I have collegues. Fellow council members. And I have just told two part time salesgirls to take a walk. It’s been a disastrous Christmas.

    [Daphne – Mario, I’m not denying that shops are having a disastrous Christmas. I can see they’re empty. Where we differ is as to the reasons why, and on whether shouting about it makes matters worse rather than helps.]

  39. Cellinu says:

    Daphne, shops are not doing well because of various reasons. One is the fear of spending because they don’t know exactly how much the utility bills will be costing them. That certainly is one of the reasons. Another reason though is the recession which is slowly coming to Malta too. This is what GRTU is talking about. Lets get moving on some counter recession measures and lets get moving right now. I agree that this stance might instill some bad feeling and perhaps affect sales negatively but the effect is marginal. GRTU felt that it was high time that the government had to start doing something in spite of the baggage that this decision may carry.This is why GRTU objected so much to the utility tariffs. We think that at a time of fast approaching recession the government should be looking after business and not dealing out more blows. Even if this means that bold economic targets will be missed. We are all going to forgive Gonzi if he misses his targets this time. For God’s sake he has the best excuse ever. We will not forgive him though for taking (or not taking)decisions that will ruin us.

  40. stephanie says:

    @cellinu

    I did not say I go to the UK to shop, so I don’t really follow your reasoning. I said I shop online and believe me, a lot of people have access to internet and do the same. Your arguments just prove my point. GRTU always point fingers at everyone except themselves.

    No one here is denying that there is a recession and that in some ways it will affect Malta and no-one likes to pay for higher bills. What we are saying is that Maltese consumers are getting more savvy and spending more wisely and have finally started to speak out when ripped off, be it through higher prices or bad service and the Maltese retailer and service provider needs to wake up and realise this.

    Interesting to note that now petrol prices are down, pump owners complain and some even refused to sell fuel at cheaper rates on Monday. Did any of them ever complain when prices went up, or refused to serve us the higher priced fuel?

    There is a limit to how one can rip off people and keep getting away with it.

    [Daphne – Just a point, Stephanie: the Maltese economy is not in recession (yet). Recession is an economic definition, not an opinion. You have to reckon with the numbers.]

  41. stephanie says:

    @Daphne

    I did not mention Malta as being in a recession [yet]. I meant that recession elsewhere might affect Malta in some ways.

    oh..and I also meant to write ‘rip people off’ and not ‘rip off people’. Sometimes my keyboard does not synchronize with my thoughts.

    Let’s all hope for a better 2009.

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