The prevailing debacle on the proposed removal of the entitlement to additional vacation leave for public holidays that fall at weekends is symptomatic of the political stasis that has pervaded institutional life in this country over the last few years. The Green Party has stated time and time again that the most significant crisis Malta faces is one of confidence and trust. Simply stated, the social parties cannot behave as partners because they are not afforded the quality of political leadership this country is yearning for.
Alternattiva Demokratika has supported the idea of a realistic and fairly drafted social pact ever since Union Haddiema Maghqudin started pushing the idea, which eventually led them to publish a draft proposal at the beginning of 2004.
Indeed, our conviction that this was an adequate instrument to establish (at least for a specified period of time) an industrial and economic platform from which to re-launch initiative and economic growth was such that we were the first to present the union with detailed commentary and relevant proposals on the draft. In our proposals we also made due mention of what we believed were the “barriers to success” that existed in the way of the successful agreement to and implementation of the pact. Specifically we argued that there existed three barriers, namely
• The dire situation in public finances.
• Excessive political partisanship.
• The absence of a national industrial policy.
At the insistence of the European Commission, government has had to address the situation in public finances through a convergence programme presented some weeks after accession. This augurs well; however, the excessive level of political partisanship and the absence of a national industrial policy on which to focus and prioritise our very limited resources have been ignored, and I suspect that both issues will come back to haunt us sooner that we may think.
Over the next two weeks, the government, unions and employers’ representatives will sit down again to re-draft what in effect is now an emergency social pact. Despite AD’s categorical exclusion from MCESD by Prime Minister Lawrence Gonzi, we wish to convey a short proposal to the three sides, in which we appeal for a commitment and a sacrifice from each.
Government
The commitment we expect from the Nationalist government is to refrain from increasing the tax burden throughout the period covering the social pact (presumably three years). Apart from measures to curtail abuse and eradicate fraud, the direct fiscal burden ensuing from any reforms in health care and pensions must be postponed until the end of the social pact.
Any further erosion in disposable income at this moment in time will spell economic disaster. The social partners would be wise to invest the next three years finalising the reforms that should kick in only on the expiration of the social pact.
While it may be understandable to the people and acceptable to the unions that the working and middle classes are asked to make yet another sacrifice to pull this country out of the rut recent PN governments have put it in, it is only reasonable for every taxpayer to expect that the sacrifice required is quantified and capped definitively throughout the period of the social pact.
Any intervening manoeuvres to introduce any stealth taxes that get labelled “contributions” should be rejected for what that are –
miserable political gimmicks!
The sacrifice demanded of the government in general, and ministers in particular, is that they re-discover a sense of humility and have the common decency to take some responsibility for the economic coma we are in. Leadership, at least as I understand it, is also about admitting to and learning from failure. The tactical perfections they are in the habit of asserting are not of this world.
Employers
The commitment that should be made by employers is that they will create as many opportunities as possible to upgrade and
diversify the skills of their employees. The only way out of this economic jam is by capitalising the additional value that will be earned from better-trained and truly empowered employees. Further, we expect that when their returns on investment improve, they exercise fairness and share part of their excess with the people who have helped them carry the cross.
We appreciate that many employers have experienced a significant fall in their income over the past five years, and that many have had to suffer the prevailing economic uncertainty in silence.
The additional sacrifice we ask of employers is that while their employees are bearing with them, they channel more of their wealth back into those same job-creating companies that employees are working to save.
Unions and employees
The commitment we expect from unions is that they ensure that their loyalties should first and foremost (and ultimately, as well) be to the people whose membership fees pay their salaries, and who look to them for real leadership.
The “unhidden” political agenda of more than one union should cease to exist in a European Malta of the 21st century.
I am not sure that the forfeiture of four days of leave will work the productivity magic for which some are hoping. Personally, I would think that an additional 15 minutes of work, four-day-a-week (forfeited from the midday break, if you so wish) would be more effective for business and less burdensome for employees.
Alternattiva Demokratika is not aware of the shape and size of the sacrifice they will be agreeing to make to carry us all out of this mire. I only know that this time, unions and employees can choose to make the sacrifice not for a political class that has repeatedly failed them, but for the two things of most value to them: the family and the
country.
Fortunately, even our makeshift democracy requires that, in three years’ time, a police officer (pathetically accompanied by two purposeless party representatives) will deliver to every door a piece of plastic that will enable citizens to freely convey to all political parties what they really think of them. Their message may not be that loud, but it can be clear.
Edward Fenech is spokesman for finance, economic affairs and tourism of Alternattiva Demokratika