Editorial

There has been very little reaction to a call made by a government minister for a renewed attempt at drawing up a social pact, a plan that was practically torpedoed when it was just about to be finalised five years ago. The unenthusiastic reaction may be due to a number of reasons, but definitely one difficulty that stands in the way today is the sad state of the trade union movement, with the largest segments competing for dominance in an environment that is making the possibility of bringing about closer relations among them even more difficult than ever before. It may not actually be an insurmountable difficulty, but the disharmony among them could hardly make matters easier for partners in the movement to work smoothly together.

The call, made by Social Policy Minister John Dalli, introduced a strong sense of deja vu, with many automatically recalling the part played by the General Workers' Union in 2004 in the scuppering of the social pact just as the country thought it had the plan in the bag. Five years on, it does not seem there is general consensus on the need for the country to have a social pact either. So, the proposal is hardly likely to go any further before such consensus is established. Obviously, Mr Dalli believes there is need for the pact, as otherwise he would not have made the proposal. He has argued that the failure to reach a social pact five years ago did not mean such an agreement was a bad idea. He felt it was never too late to start afresh "in the country's best interest".

Having a social pact is, of course, not a bad idea, and in fact Malta is one of only three member states of the European Union that have no form of social pact. The two others are the Czech Republic and the United Kingdom. Generally speaking, social pacts are drawn up at particular difficult moments when social partners feel the need for greater collective action to meet new challenges. According to the International Labour Organisation, it is difficult to define precisely the concept of social pact as it is rooted in the political, economic, social and industrial relations culture of the specific country.

In Malta, the issue was discussed at length within the Malta Council for Economic and Social Development, when its chairman had proposed a 22-measure economic plan. That, pointed out Mr Dalli when he exhumed the idea, 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. In fact, even though there may not, as yet,be general consensus of the need for a social pact, Mr Dalli is right is bringing the matter up. The economy is in recession a word that is not finding itself in the vocabulary of government politicians, but which is nonetheless staring the country in the face as key sectors continue to feel the effects of the economic downturn abroad.

The government is naturally right in considering the safeguarding of jobs as a priority in its work programme but, although giving the right assistance at the right time, as it is in fact doing, helps, safeguarding jobs may increasingly also require the taking of other measures that call for the support of the social partners. That is why it is important for the social partners to reconsider the possibility of drawing up a social pact.