Political parties, unions sign labour market policy declaration

It was a rare informal meeting that of the MCESD today that saw not only a unanimous consensus by employers' and workers' unions on a UHM proposal but included the presence of political party leaders Lawrence Gonzi, Joseph Muscat and Michael Briguglio.

Also present were deputy leaders Simon Busuttil and Louis Grech.

Hailed "historical" by MCESD chairperson Sonny Portelli, the unions and political leaders today signed a declaration pledging to work on policies that would generate quality jobs by 2020.

A proposal put forward by the Union Haddiema Maghqudin, the Active Labour Market Policy (ALMP) proposes a shift from short-term labour market programmes towards "the enactment of a long-term active labour market policy".

According to the union's economist Clyde Caruana, the declaration was crucial at a time when the economy was highly dependent on commercial ties with foreign companies.

"Our economy is becoming increasingly dependent on the quality worker and which must therefore see increased investment in human resources. Malta is finally recognizing this potential - it is not enough to invest in education," Caruana said.

He added that the quantum leap which Malta should do is to generate economic growth with added value jobs.

The ALMP's targets include the increase in the employment ratio of those aged between 20 and 64. According to the UHM, the policy could see an increase in workers by 3%. A second target is for education to go beyond the secondary and tertiary levels, where key emphasis is put on training.

According to UHM secretary general Josef Bonello, the current expenditure on ALMP stood at a mere 0.15% of GDP.

Addressing the roundtable conference, both Prime Minister Lawrence Gonzi and Opposition leader Joseph Muscat lauded the unions' ability to come together - something which was also pointed out by GWU secretary general Tony Zarb who said his union fully supported the UHM proposal.

"UHM has managed to generate consensus among social partners. Indeed, the number of industrial disputes has gone down because we have finally realised that solutions should be found around the table and not with protests in the streets," Gonzi said.

He added that the social partners should "be lauded for their cooperation during the turbulent economic times we faced over the past five years".

"We have shown that together we can overcome challenges... international recognition that we have the highest rates of students who join the workforce once they finish their studies."

Gonzi added that the Nationalist Party has committed to place the UHM proposals at the heart of its electoral manifesto.

He also warned the unions that some 25,000 jobs have to be created over the coming five years, which included students graduating from university, woman who return to the workplace and individuals who reach retirement age but opt to continue working.

According to the Prime Minister, there also needed a cultural shift in education to sciences.

"If these targets are not met, it will be extremely difficult to obtain these results," he said.

On his part, Labour leader Joseph Muscat welcomed a proposal that would see unions discussing and coming up with proposals before a meeting of the MCESD.

"I look forward to this proposal and hope that this will be the first step towards setting a trade union council," Muscat said.

He also said that he welcomed a situation where instead of government going to MCESD with a set of proposals and plans, the unions would take a more active role and come up with initiatives themselves - something that was also brought up by the social partners.

Referring to the ALMP, Muscat said this was not a choice but something that had to be implemented.

"What you are presenting is not a choice... this is the road forward," he said.

On his party, Alternattiva Demokratika chairperson Michael Birguglio said it was important for free childcare centres to remain and called for an increase in the disability pension.

"This is a sector which deserves much more attention," he said.

Briguglio also said that the cost of living adjustment (COLA) should be reviewed every six months. "Families do not plan on a yearly budget and many are finding it hard to keep up with today's needs and costs," he said.

Briguglio also said that a future government should tap into the green job market.