The cat has finally been let out of the bag.

After several days in which the government, the employers and the unions remained tight-lipped about the proposals that were being discussed at several levels - including at the Malta Council for Social and Economic Development - the package proposed by the Prime Minister last Wednesday has reached the media.

The Malta Independent, on the front page of today's issue, is carrying a story with all the relevant information regarding the government proposals. Many consider it as a last-ditch attempt to reach a social pact or national agreement to improve Malta's competitiveness. The government gave the unions and employers two weeks to come to terms on the issues at hand. The two weeks expired last Wednesday, but the deadline was extended till this weekend in a bid to find a solution. The weekend has now arrived.

The employers, almost immediately after receiving the government document, gave their reply. Although they do not agree with all the 17 clauses listed in the package, the employers gave the government the green light to push ahead.

In their words, they do not want the situation to linger on more than it has already done. They want the government to take decisions and implement them as a lot of time has already been wasted in negotiations, proposals and counter-proposals.

The unions, for their part, met yesterday to discuss the package but could not come to terms on all matters. They agreed on some points but differed on others, and a seven-hour meeting was not enough for them to find common ground.

They therefore requested to meet the Prime Minister last night, a meeting that started at Castille at 8.30pm.

Essentially, with regard to vacation leave, what the government is proposing is not very different from its last-known stand. But, instead of deciding not to give extra days leave in compensation for public holidays falling on weekend, the government has now proposed that two vacation leave days be reduced in both 2005 and 2006, and three days in both 2007 and 2008, for a total of 10.

This is all in all a smaller loss for workers than the previous proposal – if public holidays falling on weekends were not to be given as extra days leave, workers would be losing 10 days in three years, not in four, as the government is proposing now. Apart from the actual number of days, the complications regarding shifts will also be avoided.

This shows that the government is adamant in wanting to increase the number of production days so as to improve Malta's competitiveness. But rather than doing it the complex way as was being suggested before, it has now cut corners to make it simpler.

What is also important in the package is that the government committed itself not to increase income tax and VAT for the period 2005-2008, a measure that must have been welcomed both by the unions and by the employers. It has also committed itself not to increase its wage bill by more than one per cent in the years covering the package.

The employers' contribution to the package is that, while they will be getting more productive days from their employees, they will have to pay Lm5 for each employee per year towards a training fund for workers.

The end now seems to be in sight. A long debate that started well before the budget for 2005 was presented and lingered on afterwards through the first month of the year is in its final stages.

We must now get on with it because Malta cannot afford to lose any more time.