The Malta Independent 15 July 2026, Wednesday
View E-Paper

Collective bargaining at the national level - the MCESD

Marco Bonnici Sunday, 25 January 2026, 08:23 Last update: about 7 months ago

Collective bargaining can be described as the negotiations carried out between a trade union and an employer to improve working conditions of a group of employees. This takes place at the enterprise level but there is also a collective bargaining process carried out at the national level through the Malta Council for Economic and Social Development (MCESD). The MCESD was established initially in 1988 as the Malta Council for Economic Development (MCED) and was reformed in 2001, with further legal amendments carried out in subsequent years. Whilst serving as Malta's tripartite council through the representation of the government, employees' and employers' representatives, it is our national attempt to structure social partnership.

Its establishment in 1988 aimed to plan development and wages policy at a time when Malta was going through economic and labour market changes. Relations between social partners were at times tense and the council introduced a structured dialogue approach to move discussions away from the confrontational arena. 

The involvement of social partners in shaping the policy was an attempt to encourage consensus building. The national economic policies were central to the operations of the council and despite the consensus-seeking approach, whilst aiming for policies grounded in broad understanding rather than conflict, tensions at times characterised discussions owing to the different views and the diverse roles of representatives.

The 2001 reform did not just involve a change in title. The social aspect was introduced as part of the council's remit through a new legislation which strengthened the MCESD role as a tripartite national institution. This strengthened representatives' participation to influence economic and social policy and to work towards solutions acceptable to stakeholders. The MCESD became the main advisory body on national issues, with recommendations to the government on policy direction. The government used the council to discuss proposed reforms ahead of their rollout at national level, with representatives raising red or green flags, which helped to shape its decisions.

Further legal amendments led to the widening of the representation in the MCESD. Perhaps the most controversial and long disputed of these amendments was the inclusion of Forum Unions Maltin (For.U.M), a confederation of trade unions in the MCESD. For.U.M. has been requesting the government to include it as one of the employee representatives in the MCESD for years, alongside the General Workers Union, the Union Haddiema Maghqudin and the Council of Maltese Trade Unions. Following a refusal in parliament to amend the MCESD legislation to include For.U.M., in April 2012 the government had a change in heart and legislated to include the confederation together with two other representatives.

A standing Civil Society Committee was established within the MCESD and meant that civil society organisations were formally included in the council through the newly set-up committee. The legal amendments led also to the creation of the Gozo Regional Committee with representative seats in the council. Through the 2012 legal amendments, the MCESD tripartite model included NGOs and voluntary organisations, representatives from the sister island and a stronger trade union body - clearly a widened social dialogue model.

I have been participating in the MCESD for a number of years through my leadership of For.U.M. Whilst discussions vary, with agenda set by the government or by the respective representatives, different ideas are shared but there is often consensus about the guiding principles. These lead to consolidated positions of the council, which are passed on to the government. The MCESD has seen important changes in the past months - the appointment of its first CEO, the appointment of a new Chairperson and Deputy and the very recent launch of its Young Shapers Forum. This augurs well to a strengthened MCESD.  

 

Marco Bonnici is President of the Malta Union of Teachers


  • don't miss