PM calls for new bid at social pact

Nearly five years to the day when unions, employers and the government were "one inch away" from reaching an agreement on a social pact, Prime Minister Lawrence Gonzi yesterday said the time was ripe for a fresh attempt.

He insisted the country needed such an agreement to work together to turn the challenges ahead into opportunities.

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

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

Earlier this year, Social Policy Minister John Dalli had called for another attempt at a social pact, describing it as a "safety net" for employers and workers.

Addressing the first annual general meeting of the Forum Unions Maltin yesterday, Dr Gonzi said the failure of talks on a social pact years ago should not preclude a fresh attempt "in the country's best interest".

Dr Gonzi said this was a challenging time for the country because of the recession and the reforms that had to be undertaken to modernise the country.

He also spoke about social dialogue and how it had improved over the years, especially through the strengthening of the MCESD with its own law. This law, basing the council on a tripartite model with the contribution of the government, unions and employers, had been reached by consensus.

Referring to the Forum's request to join the council as a confederation of unions which represented 11,000 workers, Dr Gonzi said it was also by consensus at MCESD level that this could happen and was not something the government could "impose".

The Prime Minister also mentioned the public service collective agreement signed five years ago, covering a six-year period. He said negotiations for another agreement, based on national priorities, would start soon.

Also addressing the meeting, Labour leader Joseph Muscat pointed out that four of every 10 students in Malta did not pursue further education after secondary schooling. This, he said, was the highest in the EU which had an average of one student in every 10.

Dr Gonzi reacted by saying the rate of people continuing their post-secondary studies was on the rise. He said the government was targeting to increase this rate from the present 75 per cent to 85, also with the use of stipends and by guiding people towards careers needed by the country.

Dr Muscat also called for action to be taken to reduce the waiting lists at Mater Dei, the "state-of-the-art hospital" with "state-of-the-art employees". There should be a maximum waiting period for operations after which the State had to be bound to take corrective measures.

During yesterday's AGM, Malta Union of Teachers president John Bencini was appointed president of Forum.

He said if the Prime Minister's hint that the water and electricity tariffs would be increased again was true, it would lead to further discouragement, frustration and negativity.

Mr Bencini noted that, while energy prices in the eurozone had decreased by 10 per cent, in Malta they had risen by four per cent. He called for social dialogue to be real and said the Forum was prepared to be proactive and enter discussions with an open mind.