PM document seeks accord

The long-running talks between the social partners over some form of social pact reached a crucial stage yesterday when the Prime Minister presented the unions and employers with a final draft document that takes into consideration the proposals and concerns brought forward so far.

Sources said the unions and employers were expected to come back to Lawrence Gonzi with their reactions today.

In the absence of an agreement by the end of the week, the government intends enacting legislation to implement all the measures it had proposed in the budget on putting the economy on track, including the controversial culling of public holidays that fall on a weekend.

The document proposes measures to improve the country's competitiveness and productivity, create more and better jobs, attain a better standard of living and achieve sustainability of health and social services.

It represents what could be seen as a last-ditch attempt at having a consensus between the social partners.

The sources said it was based as far as possible on the common ground that exists between the social partners within the Malta Council for Economic and Social Development.

It takes into consideration the substance of discussions held over the last few months, such as the MCESD chairman's draft social pact on which the social partners had failed to reach agreement before the last budget and proposals and concerns expressed in the last few days of the talks, the sources added.

Other sources said the employers appeared to have accepted that any measure to cut public holidays or vacation leave would be for a four-year period and not be indefinite, as was initially envisaged.

One source said: "It's make-or-break time. We will know by the end of the week". Another interpreted the fact that talks were still underway as a positive sign.