A budget without higher taxation was the "indispensable minimum" in the current economic climate, Labour leader Joseph Muscat told General Workers' Union delegates during their national congress yesterday.

Dr Muscat was reacting to the Prime Minister's assurances on Sunday that the forthcoming budget would not increase taxes. He received a standing ovation from union delegates but this time round there was no reference to any "privileged" relationship between Labour and the GWU, a comment that had landed Dr Muscat's predecessor in a sea of controversy. Prime Minister Lawrence Gonzi chose to ignore the reference to taxes when addressing union delegates minutes after Dr Muscat's speech.

Without mentioning the budget and in a tone that contrasted with the diatribes often aimed at the GWU by government ministers, Dr Gonzi called for realism on the global economic crisis.

Reading from a prepared speech, he insisted the storm was not yet over despite signs of recovery. He said it was important for the economy to restructure, insisting jobs would be created if the country remained competitive.

He also called on union leaders to work hand in hand with the government to save jobs.

Dr Gonzi defended the ballooning deficit, saying it was the government's conscious decision to increase spending and investment in a bid to save jobs.

He too received warm applause but no standing ovation from the audience gathered in the newly refurbished GWU theatre in Valletta.

Dr Muscat departed from his prepared speech to say that Labour expected the next budget to provide economic incentives, help workers make ends meet and enable employers to create more jobs.

Without mentioning any particular case, Dr Muscat said industrial law had to change to allow workers at every place of work the right to choose their representatives through a free and fair vote.

His comment was probably a reference to the hotly contested issue of union recognition at Malta Freeport, which saw the GWU lock horns with the company's management earlier this year.

He reiterated his dream of seeing the creation of a trade union council.

"The birth of a TUC would represent a great leap forward. I dream to see unions with the right to speak freely without fear of being labelled politically. We need to be true Europeans," Dr Muscat said to applause from the audience.

He closed off his brief intervention by calling for accountability at all levels, an indirect reference to the conclusions of the government's commissioned report into the shipyards' Fairmount contract, which found big failings by the company's management.

The GWU, which has launched a new corporate identity, is celebrating 66 years of existence: from a modest beginning at a meeting in Msida to a national congress that kicked off with green laser light beaming over the audience.

The slogan for the event was Credible, Competent, Consistent and the union officials sat on the stage bedecked by Maltese and EU flags.

Closing off the congress, general secretary Tony Zarb warned the government not to increase the burdens on families, insisting people would stop it if it persisted.

He urged unity among unions and particularly thanked Malta Union of Teachers president John Bencini, who was present, for the cooperation over the utility tariffs issue.

Taking a leaf out of five policy documents approved by delegates, Mr Zarb said the union would defend workers against all sorts of discrimination whether it was based on sexual orientation, political beliefs or racially motivated.

Earlier, delegates heard GWU president Victor Carachi give his union's nod to Renzo Piano's Valletta entrance regeneration project, insisting it would create jobs and economic activity.

However, Mr Carachi hit out at Enemalta's €70 million investment in smart meters saying the money could have been better spent to safeguard jobs.

Delegates approved five policy papers on gay workers, gender equality at work, wage policy, data protection and migrant workers.

They also approved an increase in the annual fee from €30 to €40, a move necessitated by the loss of income suffered after the GWU lost its cargo handling operation in Grand Harbour.

ksansone@timesofmalta.com

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