Bid to break deadlock over economic council

A solution may be in sight to the impasse hanging over the Malta Council for Economic and Social Development, which is being boycotted by the employers’ association after it was left out of a Brussels-based civil society committee.

Parliamentary Secretary for Public Dialogue Chris Said has been holding informal meetings with the Malta Employers’ Association to explore how it could contribute in other ways at EU level and both sides have expressed optimism that the deadlock can be lifted.

Dr Said insisted a solution to the problem would be found “through discussion and dialogue”. The government, he added, was happy the MEA wanted to contribute at a European level.

The boycott was sparked by the government’s decision to nominate Vince Farrugia, director general of the Chamber for Small and Medium Enterprises – GRTU, to sit on the European Economic and Social Committee (EESC), instead of a representative of the MEA.

The association objects strongly to the nomination because it says it is the second time it has been overlooked. It has won backing for its position from counterparts on the MCESD – the Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Association. The organisations are insisting Mr Farrugia does not represent the interests of employers because the GRTU represents the self-employed.

When contacted, Mr Farrugia said his organisation represents nearly 7,500 entrepreneurs who are employers, with more than 40 per cent of its members employing between three and 10 workers and nearly 16 per cent more than 30.

“The micro and small enterprise sector in Malta represents 99.2 per cent of the total 34,127 registered firms; 32,671 are micro firms. The GRTU is well established as the national organisation that represents micro and small enterprises that together account for 67,394 employees, representing nearly 60 per cent of total Maltese employment in enterprises,” he said.

Asked about his nomination, Mr Farrugia said the committee and the GRTU fit “hand in glove” as the committee represented a wide spectrum of employers and employees.

“Honestly, I don’t know why they are making all this fuss,” he said.

The EESC has 344 members from the 27 member states and Malta has five seats. Members are not paid for their work with the EESC, although travel and accommodation expenses are covered. The EESC is split into three groups: one for employers, another for employees and the third representing civil society. Governments of individual member states nominate members on each of the three groups.

Mr Farrugia said he too had held meetings with Dr Said, over how he would operate as a committee member and he had promised to nominate people to take part in the study groups and various sub-committees.

“For example, if there is an issue which affects hotels, tourism or restaurants, I will nominate someone from the MHRA to sit on the study group because I do not want to do this alone. Everyone who has worked with me in the past knows my style,” he said.

Asked about the MEA’s decision to boycott MCESD meetings, Mr Farrugia said he was “extremely worried” that an organisation used the council “to blackmail the government”.

Dr Said, however, does not see it as blackmail: “Every organisation has the right to choose what action it wants to take to get its message across. Although I do not agree with the chosen method, I respect it.”

When contacted, MEA general director Joe Farrugia confirmed the informal meetings with Dr Said, adding he hoped there would be an outcome in the next few weeks.

He too refuted the blackmail claim, saying his organisation had taken a stand in the best interests of its members. “We are not blackmailing anyone. We simply took a stand to protect our members. Moreover, we are open to discussions,” he said.