Dalli renews call for social pact

A fresh appeal for another attempt at a social pact was made by Social Policy Minister John Dalli yesterday, describing it as a "safety net" for employers and workers.

Talks to strike an agreement were revived some time before Workers' Day last year when Central Bank Governor Michael Bonello spoke about the need "for consultations among the social partners in view of the prevailing economic situation".

Finance Minister Tonio Fenech had reacted saying he did not feel any urgent need for a social pact. But a few days later, Mr Dalli took a different stance and told social partners to try forge ahead to reach an agreement.

Mr Dalli, a former Finance Minister, reiterated his appeal yesterday during a seminar organised by Għaqda Unions Maltin on social dialogue. He said the failure to reach a social pact years ago did not mean such an agreement was a bad idea and it was never too late to start afresh "in the country's best interest".

A last-ditch attempt fell through in November 2004 in the face of objections, particularly by the General Workers' Union, to some of the key points in a 22-measure economic plan that had been proposed by Victor Scicluna, then chairman of the Malta Council for Economic and Social Development (MCESD).

That had been a golden opportunity for unions, employers and the government to subscribe to a first national agreement aimed at improving the country's productivity, competitiveness and the general economic situation.

Mr Dalli said the MCESD should see why the talks had failed and make recommendations for fresh discussions to start. He stressed, however, that "there had to be goodwill by all parties involved" for a fresh attempt and, possibly, come to fruition.

Social dialogue, he said, was at a crossroads. Social dialogue at a national level was not enough but had to be complemented by constructive dialogue between unions and management.

When discussing social dialogue, the national interest had to come first. Trade unions could not ignore the economic crisis and industrial action could endanger workers and their jobs. In their demands, trade unions should consider whether the country could afford to cater for such claims. On the other hand, everyone had to ensure one did not take advantage of the economic crisis and use it as a tool to increase the burden on workers.

Mr Dalli said confrontation between employers and workers was gradually ending and was being replaced by cooperation, at least in the private sector. The basis of industrial relations was trust, he said, adding there was a lot to win through constructive social dialogue.

Strike action had to be "the last resort" and, in their demands, unions could not brush the national interest aside.

In direct reference to the problems that ensued after two unions - the GWU and the Malta Dockers' Union - battled over the recognition of port workers, Mr Dalli said the government was concerned about rifts between unions, especially when this was over recognition.

On the formation of a Trades Union Council (TUC), an attempt that failed on numerous occasions, Mr Dalli said the differences between unions was evident. He suggested the use of "confidence-building measures" to draw unions closer.

Mr Dalli thanked employer associations, trade unions and MEPs for having worked together to ensure Malta retained its opt-out from the Working Time Directive. Malta had been right to object to the changes, which would have been highly damaging. The changes would not only have impinged on the freedom of workers to work more than 48 hours a week should they wish, but the changes would have meant problems in the organisation of Malta's essential services in view of a lack of manpower.

The president of the Malta Union of Teachers, John Bencini said his union attempted to re-open talks on the formation of a TUC but not all unions were on board. He appealed to unions that were not present at yesterday's seminar to come forward and join other unions.

Addressing the seminar, Labour deputy leader Anġlu Farrugia said social dialogue in Malta "was either inexistent or simply theatrics". He promised Labour would continue doing its utmost to keep social dialogue going.