I attended the UHM's XXIX general conference earlier this week as the union's legal advisor. Congratulations first and foremost have to go to the union officials who were re-elected unanimously by the union's delegates.

The theme of the conference was The Social Pact - for a better future. During the morning session, the delegates had the opportunity to come to terms with the meaning, importance and better understanding of 'social pact'.

A document entitled A Social Pact for Malta commissioned by the UHM and ably prepared by Dr John C. Grech, Stefano Mallia and Robert Geismann, was also unanimously approved following an intense debate on the issue.

The UHM has to be commended for its innovative and pro-active role and initiative. Promoting this idea just after last year's general election, the UHM can proudly boast to have managed to place such an important theme as the social pact on the national agenda, in times when the economic and social environment needs a new and fresh input of ideas and working methods towards solving precisely social and economic problems. These are times when we have to be realistic but definitely not pessimistic.

But what is the UHM actually proposing? The aim of the UHM is to form a social pact between all the social and economic partners of the country. All of these social partners, namely the unions, employers and the Government, will have to agree and commit themselves to attain certain predetermined and pre-agreed goals by fulfilling together the measures necessary to reach these predetermined goals.

In short, the social pact is not another MCESD, nor is it a substitute for it. It is an agreement, a commitment, a pledge from all the social partners to work in the national interest towards solving social and economic problems which the country may be facing and, more, to face the challenges which EU membership will bring along but also to pave the grounds to take the full advantages of all the opportunities that the same membership will provide.

I can summarise the document, A Social Pact for Malta, in three words - vision, solutions and future.

The document deals with six main areas of priority. It makes it imperative that the social partners agree to work to enhance competitiveness and increase the efficiency of the labour market.

The social pact proposed by the UHM aims to promote innovation and reducing bureaucracy while creating a business-friendly regulatory environment. Finally, the UHM's social pact proposes that the social partners commit themselves to establish a stable economic framework as well as enhancing the tourism industry.

This is the UHM's vision - it is a union which proposes concrete solutions rather than resort to protests; instigates agreement and commitment. It ensures that the best interests of the workers come first.

The social pact provides a framework within which the social partners will be able to work and ensure that their commitment will lead to solutions. It has worked in other countries - I do not see why it cannot work here.

This is our country's future. EU membership will bring with it some major challenges. But it will also bring along numerous opportunities for our workers and our people.

The social pact should help us face these challenges and provide the necessary structure to help the Maltese workers avoid missing out.

This proposed social pact has a three-year term starting in January 2005. It can be extended. It can have other priorities at a later stage. It can change its priorities. But for this to be a success, all the social partners have to give their commitment and agree to participate actively in the social pact.

In today's globalised world, open economy and in a market of 500 million as that of the EU, Malta can do well and move forward. But we all have to pull the same string, agree on placing the right priorities first and drive the same vehicle towards the same destination. This is what the social pact is all about.

By the end of 2007, I dream of being able to say thank-you to all social partners, for having driven the same vehicle together in the same direction. This shared governance is the key to our success. Good luck to all.

Dr Spiteri Bailey has just concluded his LL.M. in European Union (Employment & Social Policy) Law from the University of Leicester.

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