No agreement on proposed social pact

Abstract

During 2004, the Maltese social partners and government discussed a possible social pact, aimed at enhancing national competitiveness, and in November the chair of the tripartite Malta Council for Economic and Social Development proposed a draft of such an accord. However, by the end of the year, no consensus had been reached on a pact. The sluggish growth of the Maltese economy in 2004 prompted the social partners to try to join their efforts to enhance Malta’s competitiveness. Trade unions and employers' organisations thus put forward suggestions intended to lead to the signature of a 'social pact' (MT0404101N (//www.eurofound.europa.eu/ef/observatories/eurwork/articles/uhmproposes- social-pact) and MT0406102F (//www.eurofound.europa.eu/ef/observatories /eurwork/articles/debate-over-social-pact-continues)). In November 2004, the chair of the Malta Council for Economic and Social Development (MCESD (http://www.mcesd.org.mt/)), the country’s highest national tripartite forum, presented a draft social pact to be debated by the representatives of the social partners. The chair argued that this proposed plan aimed to attract investment to Malta while generating better work opportunities and safeguarding the country’s social welfare. He proposed that the pact should cover a three-year period (from January 2005 to December 2007) and suggested that MCESD should be given the role of scrutinising the implementation and eventual results of the social pact. The draft social pact consisted of 22 measures under four headings: stimulating work and economic activity; wages policy; development of human capital; and taxation of government expenditure. The measures were based on the suggestions made by the social partners.