Michael Falzon, who is running for leader of the Labour Party, yesterday had a meeting with the General Workers' Union, the first in a series he will be holding with civil society, particularly the social partners.

Dr Falzon spoke about current challenges, particularly pension reform, insurance for private healthcare and the rising cost of living.

The mentality had to be instilled, he said, that one looked ahead at challenges and prepared for them well in advance.

Some sectors of society were badly affected by the government's reform of the pensions sector. Such reform should not be tough on the weakest. The necessary adjustments should be made for everyone to be able to live a decent life.

The health sector, on the other hand, should always remain a free quality service available to anyone who needed it but a larger use of private health insurance schemes should be encouraged even through fiscal incentives for those opting for it.

Welcoming Dr Falzon at the union's headquarters, GWU general secretary Tony Zarb said the union wanted the Labour Party to remain a workers' party respecting the principles of social justice and employment - even from the opposition - to ensure that workers had decent jobs.

The GWU, Mr Zarb said, had drawn up a report on pensions, which it would keep updating as necessary and it was important that health services remained free for all. The union was also worried about the rising cost of living, since workers were finding it more difficult to cope.

Mr Zarb said it was important that the government came up with proposals on how the burden on workers and their families could be eased. He promised that the union would work with all those who respected it and its members.

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