Entrenched positions?

The budget for this year will long be remembered. Despite the fact that other measures were announced, the proposal to forfeit four public holidays falling on weekends has, so far, stolen the limelight. Instead of ensuring cooperation, coordination and agreement before the budget announcement, the social partners are engulfed in deep controversy; they cannot agree and they have been unable to come to a compromise, sharing in the responsibility and the burdens of Malta's economic woes.

Last Saturday's MCESD meeting, lasting only about 90 minutes, proved inconclusive. That is mildly put. The fact that the meeting's duration was relatively short is tantamount to saying that the divisions among the social partners are wide and sharp. More than that; one can say that all social partners are now entrenched in their positions and a negotiated compromise is difficult to sight.

Though what happened inside that elusive meeting room is still publicly unknown, from what transpired it is clear that the employers, who originally advised the government on this measure to be announced in the budget, were not prepared to continue discussions unless this measure is accepted by trade unions. That is certainly an entrenched position that makes a negotiated compromise difficult to achieve.

On their part, trade unions did their utmost to find an adequate and equitable solution. Apparently, their recommendations are not limited to the four public holidays issue but based on sharing the envisaged burdens and to promote an environment of investment and employment opportunities. The interpretation of the trade unions' position is that they started off with endeavouring to arrive at a compromised solution but ended up on a completely negative response to the employers' stand. So here again, we have another entrenched position.

The government, responsible for the management of the national economy and for the administration of the country, is in the midst of all this mess that, one may say, is of its own doing. It is trying hard to bring the two opposing social partners nearer a reasonable solution but, so far, it has failed. It is insisting, however, that if agreement is not reached, the budget measure on public holidays will be implemented. This indicates another entrenched position.

Significantly worse, the opposition is attentively observing the development of this issue and it is all out to make political mileage out of the situation. Instead of having the decency of entering into the fray and attempt to find a reasonable solution, thus proving that it is a good alternative government, it is fanning the flames by organising a mass protest meeting to ensure that people will not tolerate further hardship: another entrenched position.

In such entrenched positions can Malta ever be competitive and productive? The opportunity cost of this time devoted to finding a solution to this problem is extremely high. Employers (capital/investment) and labour (trade union organisations) are important components for the generation of wealth. They should cooperate in the activities necessary to produce goods/services and coordinate policies to be competitive particularly in the global market. Instead, we have a situation where none of the social partners can discover the route to attain viable economic positions.

True, through parliamentary majority, the government can legislate and enforce what has been announced in the last budget. But if authority is institutionally disregarded, a question of legitimacy arises. The government exists because people comply with laws and regulations. Political, social and economic problems tend to escalate if the government's laws and regulations are not complied with by social actors. This potential threat is forcing the government to work harder to bring the other two social partners to a compromised solution.

National well-being and maturity should not allow these entrenched positions to last long. Nothing good is coming out of it; much harm is being done.