When the utilities issue first cropped up in October 2008, the social partners on the Malta Council for Economic and Social Development rightly informed the government, in a united voice, that this was not the way of doing things. Constructive social dialogue entails that, before a decision is taken, the social partners should, at least, be consulted beforehand. Subsequently, the MCESD chairman, in agreement with all the social partners, kicked off a consultation process under the guidance of Gordon Cordina.
The main objectives were that of coming out with a set of proposals to ensure that Malta's economy moves out of the recession as quickly as possible and that, while the economy grows, the people share in the wealth generated, to protect those in society who are most vulnerable and, last but not least, to put government finances on a sustainable path. These main objectives were ambitious in themselves, yet, slowly but surely, all the social partners, including the GWU hailed this as a new beginning of how social dialogue should be conducted. A lot of time was spent by all social partners and, obviously, by Dr Cordina so that consensus was reached on this very important document, which some were seeing as a new social pact. However, this document was by far more comprehensive, balanced and fair than the previous one. But, above all, this document, while ensuring that the economy grows and government finances embark on a path of sustainability, also ensured that the people are put first before any other consideration.
Unfortunately, when this document was presented to the government during the pre-Budget consultation process, most of the proposals, if not all, were discarded. Attempts by the GWU to revive the document both at the level of the MCESD and the Malta-EU Steering and Action Committee failed. Yet, it seems that the media did not pick on this, even though there was a lot of media attention on this document during the consultation process. Had it, for instance, been the GWU that disagreed with this document I am convinced that the media would have made a lot of noise about it, to say the least.
Therefore, it should not have been a surprise to anyone that the GWU decided not to attend the MCESD meeting held in January when the government had already decided not only to discard this document but also in view of the fact that the drastic increases in the water and electricity tariffs had already become effective.
Most of the social partners, including the GWU, have been telling the government for quite some time that the water and electricity tariffs should be increased incrementally over a period of time in order to safeguard investment, competitiveness, the consumer and jobs. More and more people are finding it hard to make ends meet and it is no surprise to anyone that the water and electricity tariffs have featured in recent surveys as one of the top concerns affecting the people. We risk sinking further if these tariffs are not rectified.
The only way forward is for the government to put the people first. The economy should be for the people not the people for the economy. Countries that adopted this strategy, such as Finland, are among the leading economies in Europe and rank first in terms of prosperity and the quality of life of their people and in economic performance. The government, therefore, should have another look at the document compiled by Dr Cordina as this laid down the roadmap for our people to prosper and enjoy a better quality of life while, at the same time, the economy is propelled to grow and government finances are put on a more sustainable platform.
Mr Carachi is president of the General Workers' Union.