Central Bank governor Michael C. Bonello yesterday highlighted the importance of social dialogue during a meeting held at the General Workers Union (GWU) premises in Valletta.

Themed “Should we have a social pact?” those present appeared to be of the opinion that it was important for other forms of social dialogue to could come into play and the country need not necessarily have to come to an agreement on a social pact to be more competitive.

The matter was first brought to light by Mr Bonello himself during a business breakfast organised by The Malta Business Weekly a few weeks ago.

Giving a presentation similar to the one given during the business breakfast, Mr Bonello pointed out that his appeal was not necessarily to re-open the social pact debate; rather, he highlighted the country’s economic and financial realities, particularly the fact that its level of competitiveness is still much lower than that of the eurozone average.

“The government, social partners and employers have to come together and discuss the way forward. It is only by means of social dialogue can we be more competitive and truly take advantage of the larger market we now form part of,” he said.

Malta Employers Association (MEA) director general Joe Farrugia – another main speaker during yesterday’s meeting, moderated by GWU deputy secretary general Michael Parnis – repeated the association’s position on the social pact debate, saying the MEA was rather skeptical about reopening the debate, which failed to materialise into a social pact in 2004/5.

“I have to say that we were very disappointed that the social pact debate failed to materialise four years ago, particularly due to unnecessary pressure from the media.

“In any case, the economic situation today is very different to what it was four years ago,” said Mr Farrugia, adding that it was important to look at the country’s possibilities for growth with an open mind, learn from other countries’ experiences and see what’s best for our circumstances.

Closing yesterday’s meeting GWU secretary general Tony Zarb said it was not necessarily a social pact that could help the country be more competitive.

“There are many other things that can be discussed – research and innovation, training, workers’ conditions and fair flexibility. We are open to new concepts, as long as workers do not continue to make sacrifices and carry a heavier burden,” he said, adding that the GWU is very worried about the ever-increasing cost of living.