He said that Maltese employers are aware of the increasing volatility of international markets, resulting from faster mobility of resources, which can increase a sense of uncertainty and serve as a threat to investment, employment and the standard of living of employees.

He acknowledged that Malta is passing through a phase of rapid restructuring to keep up with innovation and said that “one negative aspect of globalisation that is adversely affecting our economy is that many of our firms are competing with others operating from countries that do not have the same standards of decent work”.

Mr Farrugia said that Maltese employers actively support any initiatives that could lead to a social pact, the main objective of which will be to generate productive employment which, in fact, is very much in line with the vision of the ILO’s “decent work agenda”.

He mentioned that the infrastructure for constructive social dialogue exists through the Malta Council for Economic and Social Development and said that this is the opportune time for this forum to enhance its role. He made an appeal to the other social partners to come to terms with the economic situation and to focus on the collective efforts to set a strategic direction for the country. Mr Farrugia concluded by saying that Maltese employers strongly endorse ILO’s focus on the creation of employment as a central route from poverty. Emphasising the need at national level for the continuing development of an appropriate environment for job creation through the promotion of an entrepreneurial culture, Mr Farrugia said that “this should be a commitment of all social partners.”