Social partners object to GRTU statement

A statement about the state of the economy by the Malta Chamber for Small and Medium Enterprises - GRTU last week led to another stormy meeting at the Malta Council for Economic and Social Development on Saturday.

Discussions are taking place at the MCESD with the social partners trying to hammer out a social pact document.

In its statement, the GRTU noted what Edward Scicluna, a former MCESD chairman, had proposed regarding devaluation, imposing a wage freeze and containing unemployment.

The GRTU spoke against the idea of devaluation, something which was never on the agenda of the MCESD, but it also spoke against the wage freeze and insisted on reducing the number of public holidays, which was one of the proposals being discussed at the MCESD.

The social partners felt that the statement, and the way in which it was carried in the press, was a slap in the face as they had agreed not to speak about what went on at the MCESD. They felt the publication of the statement went far beyond "a leak".

But GRTU director general Vincent Farrugia argued that the public should be involved in the debate and while discussions at the MCESD took place behind closed doors there was nothing to stop interested parties or people from contributing to the debate.

The MCESD talks are currently focusing on wages and cost of labour issues, hence there were proposals by employers to cut overtime payment rates as well as a reduction in the number of public holidays.

Employers, including the GRTU, want to regain competitiveness, especially in the tourism and manufacturing sectors, where the cost of labour was high.

The GRTU has made it clear it will not be part of a "weak agreement" that does not give the economy a clear push.

An MCESD meeting that had been scheduled for today has been postponed while unions and employers meet their peers again in a bid to find a way forward.

Another meeting is scheduled to take place later this week.