Despite not taking part in the joint manifestation organised by the Trade Unions against the new utility tariffs last Friday, the employers’ organisations quizzed by Business Today nonetheless welcomed the manifestation as it gave a clear message to Government of the unpopularity of these tariffs.
A spokesperson for the Federation of Industry (FOI) and the Chamber of Commerce and Enterprise (COCE) welcomed the fact that 17 Trade Unions agreed on a common issue.
“The fact that all these unions agreed on a common issue shows the intense concern of all those who participated in the protest, and is a show of unity. We do think that this could affect MCESD in a positive way and could enhance the existing good relationship between the employers and unions,” the spokesperson told Business Today.
The FOI and COC spokesperson said that the joint demonstration “delivered a strong message to government on the consensus that exists on the concern of the impact that the revised tariffs could have on the community at large. We have to wait for the outcome of this,” she told Business Today.
On the question of whether, in their view, the joint demonstration had helped the social partners’ cause on the utility tariffs issue, the FOI/COCE spokesperson said: “We understand that the unions requested and met again with government to discuss the issue, and we have to wait for the outcome.”
Asked whether they agreed with the Unions’ position that the government should either alleviate the burdens caused by the new utility tariffs or else compensate for them, the spokesperson for the two employers’ organizations agreed partially with this proposal.
“If at all possible, we agree that Government should identify ways of alleviating the burdens caused by the increases, but strictly without further burdening enterprises, as otherwise the same employees that the unions are protecting would be negatively affected,” she said.
The GRTU announced that it will be filing a court case in the domestic and European Courts to contest the validity of the new utility tariffs. However, when asked whether they would be taking similar legal action in the interests of industry, the FOI/COC spokesperson excluded this course of action.
“At this time, there are no plans to adopt similar actions,” she told Business Today.
Asked whether the two employers’ organisations thought that they could still negotiate a better deal with Government at this late stage, the FOI/COC spokesperson said: “We don’t think that it is a question of a better deal. Different social partners have different approaches to address challenges and to support their members.
“At this stage, we will keep an open consultation with government and with the other social partners.”
On his part, Malta Hotels’ and Restaurants’ Association (MHRA) President Kevin De Cesare also welcomed the unions’ joint manifestation against the new utility tariffs.
“Obviously, having so many unions protest about the electricity tariffs only goes to show how serious the situation is,” De Cesare told Business Today.
The MHRA President said it was a pity that it had to come to this “as all parties working together should be all our priority, especially when one sees what is happening overseas. Nowadays, the word recession seems to be coming out of every country,” he insisted.
Decesare said he believed that the MCESD in the last few months had worked “very diligently” and it was “a pity that the government did not heed our advice.”
“Will the MCESD be stronger? Well only time will tell but as I said, it is working at the present moment in a very constructive way,” he told Business Today.
De Cesare insisted that the ever-decreasing fuel prices should induce government to re-consider the tariffs. “I believe that all parties concerned know there is an issue with all economies at the present moment,” he explained.
“I believe that with the price of oil heading continually south, perhaps the government might have absorbed the increases and kept the surcharge as it is to collect the shortfall Enemata has. Obviously, inefficiencies should not be passed on to customers and that includes theft.”
On the issue of whether the joint demonstration had helped the social partners’ cause on the utility tariffs issue, Decesare did not give a categorical response.
“On that point, time will tell but I hope the meeting that government has might reopen more dialogue on the utility tariffs especially the introduction of increases from 1 October,” he told Business Today.
On the question of whether the Government should alleviate the tariffs or else compensate for them, Decesare did not mince his words. “I believe that it is not in the present situation possible to give any increases in wages due to the tariffs. If this happens, unemployment will be immediate and quite severe.
“We are all suffering due to our core markets being in recession. We have to stay competitive or risk losing everything. In my view, we either accept the increases and suffer the consequences or the government finds another scheme to collect the money it needs at a later date,” the MHRA President told Business Today.
Like the FOI and COC, the MHRA said it was excluding the possibility of opening court proceedings against the Government over the new utility tariffs as the GRTU have announced. “We will not be instigating any court case on the matter,” De Cesare said.
He is still hopeful that a solution can be found.
“Obviously, there is a lot of pride at stake but we have to be mature and find a solution as otherwise we will all pay dearly,” De Cesare warned.
“Now is not the time for industrial action and I honestly believe it is neither the time for these utility price increases.”
On his part, Malta Employers’ Association (MEA) Director-General Joe Farrugia explained that “although the joint protest by the unions may not contribute towards a stronger MCESD per se, it could pave the way for a Trade Union Council in Malta, but that is a direction that the unions have to decide for themselves”.
Whether the event has had any impact on the utility tariffs issue “will depend on the extent to which the government is prepared to review its position to any proposals from the part of the unions without compromising its revenue targets and without adding any costs to employers,” he told Business Today.
“I think that the MEA made its position clear that a stabilisation element should have been factored in the tariff revisions to avoid sudden shocks to the economy at a time when many major economies are sliding into an international recession. We still believe that this would have been a better route to follow,” Farrugia insisted.
The MEA Director-General said that “irrespective of the outcome of this manifestation, I think that the major lesson to be learnt on the part of the government is not to take the MCESD lightly.
“I have no doubt that had the social partners been given adequate forewarning and proper consultation, the matter would not have escalated to this extent,” he said.
“The Prime Minister has shown his willingness to meet the unions and the GRTU – it met the employer bodies earlier – and it is a certainty that this would have been his stand even if the demonstration did not take place.
“It is a pity that this disposition was not announced months before the budget, and that the whole matter was kept concealed when the Prime Minister met the MCESD in July,” Farrugia told Business Today.
“Another thing that should be on record is that, following the meeting between the Prime Minister and the employer bodies, the MEA did not endorse any agreement with the Government, as has been claimed. I have correspondence to this effect,” the MEA Director-General insisted.
