Unions-employers meeting ends in deadlock

The third meeting in a week of the Malta Council for Economic and Social Development ended in deadlock yesterday after the unions claimed the employers had "closed the door to the discussions".

The unions are now appealing to the government to continue the discussions.

The government, reacting to the MCESD meeting, said it was clear that the proposal presented by the trade unions was not enough to yield the immediate results the country needed to stimulate its economy, but it had presented a new proposal which it was asking the social partners to consider.

In all three meetings of the MCESD last week, the 19 registered unions were being represented by the General Workers Union, the Union Haddiema Maghqudin and the Confederation of Malta Trade Unions.

The meetings were held in a bid to come up with a package of proposals that the unions are saying would boost competitiveness as much as the reduction in holidays the government had suggested in its 2005 budget.

In his Budget speech, the Prime Minister and Finance Minister, Dr Gonzi, had announced that workers would not get an additional holiday whenever a public holiday falls on a weekend.

The government had said that it was prepared to await an agreement between the unions and the employers' associations on a set of proposals instead of the loss of holidays but in the absence of such an agreement, it would legislate to achieve the aim announced in the budget.

If the government goes ahead with its original plan, workers would lose 10 holidays by 2007.

Following yesterday's breakdown in the talks at the MCESD offices in Floriana, the representatives of all 19 unions met at the Osborne Hotel in Valletta and following a meeting lasting over an hour they called a news conference addressed by Professor Edward Zammit.

Professor Zammit said that the MCESD meeting which had started at about 1.30 p.m. ended at about 3 p.m. when the parties taking part realised that there was no point in discussing the issues further. The MCESD meeting was also attended by Parliamentary Secretary Tonio Fenech.

Professor Zammit added that the unions were making a strong appeal to the government to continue the discussions and explore all possible avenues that could lead to an agreement between them and the employers before legislating.

"It would be a great mistake if the government were to go ahead and legislate without first having exhausted all possible leads," Prof. Zammit said.

The unions are claiming that the employers wanted to discuss only one out of a whole package of proposals, which was not acceptable to the unions.

When asked what the proposal was, Professor Zammit said the unions preferred not to divulge any details of the package so as not to prejudice the discussions.

In a joint statement following the MCESD meetings, the Chamber of Commerce and Enterprise, the Federation of Industry, the Malta Hotels and Restaurants Association, the GRTU-Chamber of Medium and Small Enterprises, and the Malta Employers' Association claimed that the proposals submitted by the unions reopened a number of points that were previously discussed within the context of a social pact, but had not achieved the intended result.

The employers said they made it clear at the MCESD meeting that they would continue to participate in such talks provided that the issue of public holidays is solved first and used as a basis for further negotiations that might lead to a social pact. The unions refused this position, the employers argued.

In spite of a suggestion by Mr Fenech, whereby there would be a reduction in optional annual vacation leave of two days as part of an overall package for a social pact that would include other measures, the unions remained adamant on reopening all the issues related to the social pact without any commitment on measures concerning leave, the statement added.

"On the other hand, employer bodies showed good faith and accepted the recommendation by the parliamentary secretary to unblock the situation.

"The refusal by the unions created an impasse and as a result led to a breakdown in the discussions," the employers added.

According to the constituted bodies, the measure on public holidays is the least the government could have taken towards improving productivity, and that on its own, will be insufficient to solve the country's economic problems.

"The country needs to introduce concrete measures to safeguard current employment and generate new jobs. The way the budget measure has been turned into a controversy does not augur well for an improved economic scenario.

"The constituted bodies expect the unions to show a deeper appreciation of economic realities in the interest of their members and the country as a whole," the statement concluded.

The government in its reaction yesterday afternoon said it was clear that the trade unions' proposal was not enough to yield the immediate results the country needed to boost its economy; however it had presented a new proposal which it was asking the social partners to consider.

"In the context of international competition, urgent measures need to be taken to safeguard jobs and attract new investment.

"In view of the disagreement at the MCESD, the government has made a proposal to the social partners in an effort to break the deadlock. The purpose of the proposal is to immediately implement a measure to raise productivity while opening the door for further talks leading to wider agreement on a number of other measures and initiatives."

The government did not say what it was proposing, but reiterated that in the absence of any agreement it would impliment the measure on public holidays annouced in the budget.

"However, since it appears that the unions wish to have another meeting with the government, the government remains open for further talks, as long as a conclusion is reached within the predetermined time."

The government said economic growth and improved competitiveness was one of the priorities set in the budget and it was taking various other measures to boost the manufacturing and tourism sectors and the self-employed. It was also allocating Lm5 million for workers' training.