The new collective agreement for the 30,000 public sector employees will cost the country €190 million over six years and the Government expects it to improve efficiency and the level of service.
The agreement had been under discussion for the past two years and replaces one that expired in 2010. It will be valid for six years and will give each government employee a 2.5 per cent salary increase every year.
By the end of the term, each worker’s pay will have risen by 13 per cent.
During the signing ceremony for the agreement, Prime Minister Lawrence Gonzi said people expected the level of service to improve.
Dr Gonzi did not take questions from journalists and could not be asked whether the agreement had specific targets on how efficiency would improve or whether the Government was going to tackle, once and for all, the issue of its workers having half days in summer.
“This agreement will give stability to the country for the next six years,” Dr Gonzi said as he praised unions and worker representatives for keeping level heads and being reasonable in their demands, mindful of the current economic scenario.
Dr Gonzi spoke on how the Government wanted to lead by example with the introduction and beefing up of several family-friendly measures, such as tele-working, flexitime, the possibility of taking leave on an hourly basis and reduced hours.
Around 4,000 workers benefited from family-friendly measures under the old agreement and this number is expected to double.
He urged the private sector to follow suit and introduce such measures for their employees.
Retired public employees will also see an increase in their pensions.
Finance Minister Tonio Fenech said the agreement would offer “stability and tranquillity” to the country and this was in stark contrast with other European countries, which were reducing salaries rather than increasing them.
The minister stressed the agreement was transparent and gave Malta the certainty of stability.
He said the agreement introduces new measures on settling industrial disputes.
The agreement was signed by Godwin Grima, head of the civil service, and representatives of the Union Ħaddiema Magħqudin, the General Workers’ Union, the Malta Union of Teachers, the Malta Union of Midwives and Nurses, the Medical Association of Malta, the Union of Public Service Architects and the Union of Professional Psychologists.
The latter union was due to opt out of signing since it had reached no agreement but a last-minute deal was struck, with a positive e-mail being received just two hours before signing.