No change is 'not a choice'

The general secretary of the Union Haddiema Maghqudin, Gejtu Vella said the union wanted to be involved in discussions on pensions reform because the status quo was "not a choice".

Mr Vella said the union's only agenda was the interest of the workers it represents and it was in this spirit that its representatives were discussing the pensions reform issue and facing the challenge of negotiating with the other social partners.

"Over the years, people have been led to believe that the government would take care of them from birth to death. But times have changed and we shall let no government decide for us by itself," Mr Vella said.

The UHM was the union that had stopped the government from legislating a pensions reform without first opening a national debate on the issue, Mr Vella said.

"We cannot turn a blind eye to the inescapable reality that change is necessary. We are ready to make decisions and shoulder responsibility for those decisions," he added.

Mr Vella said that what was partly the cause of the unsustainability of pensions was "mismanagement" of public funds by successive governments.

One example was the Consolidated Fund which was originally set up to outlay pensions from national insurance contributions but which the government had used to finance other areas besides pensions, he said.

The UHM felt there should be a government pensions fund which, used exclusively for pension, would be administered in collaboration with the social partners, Mr Vella said.

Referring to the ongoing talks with the government and the employers on an economic "package" that would bring about a much-needed boost in the country's productivity, Mr Vella said the social partners had almost reached an agreement "on a number of points".

"We will only stop negotiating if the government halts talks. We believe in negotiations and think that an agreement should be reached," Mr Vella said.