Employers seek EU redress over Vince Farrugia's appointment

The Malta Employers Association (MEA) is seeking redress on a European level because it feels the government's decision to exclude it from a Brussels-based committee is "highly irregular".

MEA director Joe Farrugia said the association had warned the government there would be trouble if it left out the biggest employers' representative from the European Economic and Social Committee (EESC).

"They must have thought we were bluffing and went ahead with their plans, but we're not going to accept it. Just because we're prudent they assume we're weak - the time for prudence is over," he told The Sunday Times.

This issue arose after the MEA felt it was again overlooked when Cabinet appointed Vince Farrugia from the Chamber of Small and Medium Enterprises - GRTU on the EESC to represent employers.

The MEA will continue to boycott the Malta Council for Economic and Social Development (MCESD) - a platform for employer organisations, unions and government representatives to promote social dialogue - until the situation is rectified.

"Social dialogue without the presence of the MEA cannot exist in Malta. Our members employ more than one third of the labour force, which produces more than half the GDP. This is no idle boast and we are not sparking a row for nothing," Joe Farrugia said, adding he had the full support of members.

The EESC is important to the MEA because it is the main European social dialogue platform where social partners debate. Numerous policies, position papers and recommendations to the European Commission emerge from this committee.

Malta can nominate five people - two from workers' groups, two representing employers and one from civil society.

This row has its roots in a decision taken six years ago when the MEA's nominee Lawrence Mizzi was "mysteriously" replaced by Sylvia Gauci, a member of the GRTU, at the last minute.

The MEA believes the GRTU should not be taking its place as an employers' representative on the EESC.

In 2006, another call for nominations was issued, but since Malta's representatives had only served two of the full four-year term it was decided the same people should remain on the EESC.

"We were prudent and bowed our head to this decision, but we made it clear next time we would not accept such a situation. We've been consistently bypassed. That is why we reacted this way," Joe Farrugia said.

When it was time for fresh nominations this year, the employers' representatives on the MCESD - the MEA, the Malta Hotels and Restaurants Association, and the Chamber of Commerce, Enterprise and Industry - submitted the names of Mr Mizzi and Stefano Mallia to the government.

The GRTU, also on the MCESD, nominated its own director general, Vince Farrugia.

Cabinet chose to appoint Dr Mallia and Vince Farrugia to replace Ms Gauci, a move which promoted the MEA to withdraw from the MCESD.

"The government knows we are in the right. We don't usually come out like this, but this is where we draw the line. We've been taken for granted for too long. I had warned them before what was going to happen so this is no surprise to them," Joe Farrugia said.

He is insisting the MCESD Act clearly shows GRTU is not part of the employers' group and never has been.

He believes the appointment was made to "curry personal favours" for Vince Farrugia, who was a Nationalist Party candidate at the last European Parliament elections - an accusation Vince Farrugia denies and is seeking legal advice on possible defamation.

When contacted, Public Dialogue Parliamentary Secretary Chris Said also denied this accusation and said the appointees were chosen according to their merits, adding he could not be drawn into the dispute between the MEA and GRTU.

Contrary to Joe Farrugia, Dr Said considers the GRTU to be an employers' group as specified in the Employment and Industrial Relations Act.

Mr Said said he did not plan to retract his decision, but was willing to meet the MEA - an appointment for an informal meeting had been set - to discuss the best way the association could contribute in international forums.

When asked if he knew about MEA's position, Dr Said said everyone had wanted to be represented on this board and the MEA was not the only association making its position clear.

"All three nominees were good but somebody had to decide who should represent Malta. It's not an easy decision and finally the responsibility fell on Cabinet," he said, appealing to MEA not to boycott the MCESD.

However, Joe Farrugia said it would be "a joke" if the MEA rejoined the MCESD unless it was given the recognition it deserved and the ball was now in the government's court to resolve this situation.