The Malta Independent 14 May 2024, Tuesday
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The Folly of brinkmanship

Malta Independent Sunday, 18 December 2005, 00:00 Last update: about 19 years ago

The GWU has locked horns with the government after a succession of skirmishes with Investments Minister Austin Gatt.

The sad end of the Sea Malta saga is only one unsavoury and costly aspect of a story that is still developing and in which the nation’s stakes are higher than those of the contending parties.

The union’s militancy and the Minister’s often brusque demeanour towards the union did not help ease the build-up of tension. In the world of industrial relations, neither side can negotiate from ex-cathedra positions. The hard fact that the Prime Minister and the GWU did not manage to achieve a meeting of minds to ward off a final confrontation was even more telling.

The root of the confrontation are the government’s financial difficulties and Malta’s economic predicament. Its economic predicament has been aggravated by the rush of globalisation, weakening demand for Maltese exports in overseas markets, and escalating oil prices. The stringent financial situation is, to a large extent, self-inflicted – the result of persistent deficit spending and extravagant money-no-problem follies, culminating in mountainous debt.

There came a time when the European Union called the Gonzi government to order (soon after Malta’s EU accession) and a so-called convergence plan was set in motion. This called for higher taxation, more austerity and a major restructuring exercise in the public sector. The workers bore the brunt and the GWU took a front-line role.

Combustible situation

The workers had earlier been assured that the economy was “on track” and that future prospects anticipated an “early spring”. They have now realized that everything was true but the facts.

For better or for worse, the GWU submitted its proposals to the government with a view of mitigating the impact of austerity measures on the workers. The Prime Minister’s response was frosty. The first round of industrial action followed. A marathon meeting of the Malta Council for Economic and Social Development ended in stalemate.

The government may be adamant but the workers are not mute. And in a combustible situation of this sort, there is more in heaven and earth than in philosophy.

So long as the government and the GWU continue to confront each other eyeball to eyeball, it is difficult to expect progress. Neither could there be a thaw in relationships if the official side insists that the GWU forgoes all forms of militancy, while the union side denounces Austin Gatt’s ministerial appointment as the worst since Caligula made his horse a consul!

Stalemate

The stalemate must be broken fast, in the national interest. If not, there will be no winners... only losers. If the economic temple, already shaken, were to collapse, it will crash down on the heads of all concerned

The problem confronting the government and the union is real and urgent and, although political motives may have been at its origin, its solution lies in the economic equation that needs sorting out.

This solution could not rely exclusively on the power of the inscrutable element of the marketplace. It has to take in concepts of fairness and social justice, latched on to productivity and enterprise. It calls more for economic and managerial know-how than anything else.

Industrial relations in Malta could do with less political and media incitement. Political hyenas with their personal computers, and other literary Alsatians, are prone to do more damage than politicians, because their doodling in Malta could not only frighten or dissuade foreign investors but, since their written material is timeless, it has the habit of resurfacing.

Unyielding absolutes

The industrial relations sector is a world of myriad options, of complexity, detailed work and goodwill. Unyielding absolutes just don’t fit. It is essential that when negations lead to bottlenecks, employers and workers seek breathing space and a reasonable bit of time, so that they can think again. This is all the more necessary when such negations are overshadowed by precarious economic conditions.

In such circumstances the national interest prevails over sectarian interest, and confrontation should make place for a modicum of consensus and a spirit of give and take.

Once the government, employers and workers are in the same boat, common sense and the will to survive become the weapons of last resort.

These are not the weapons of warfare and industrial strife. They are the weapons indispensable for conciliation, understanding and a return to social harmony.

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