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SPEECH BY THE HON EDWARD FENECH ADAMI, PRIME MINISTER, AT THE ANNUAL CONFERENCE OF THE MALTA EMPLOYERS ASSOCIATION "RISING TO THE EU SOCIAL CHALLENGE
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12/01/2001
12/01/2001
| I am very pleased to conclude today's Conference, | particularly given that it deals with a topic which is so far-reaching and timely. Indeed, I note with satisfaction that in recent months the implications of accession to the European Union have been the subject of discussion in a number of fora. |
| Today's Conference places an emphasis on the | social challenges posed by the EU, with particular reference to employers. There are a number of ways to look at the social acquis of the EU. I think that in the first place the acquis has to be considered in the context of our country's development over the last forty years, where our constitutional and democratic evolution has been underpinned by steady socio-economic progress. |
| Economic activity and growth are a continuous | process, and whilst posing challenges to our enterprises, they also offer opportunities that we, as a nation, must endeavour to exploit for the common good. However, whilst economic growth is necessary for the promotion of continuous and sustainable improvement in our standard of living, it should not undermine social development. |
| One of the most positive effects of economic | progress for Malta, has been an increased awareness of social rights and the demand for their recognition as legal rights. Moreover, the need to compete in a globalised economy poses new challenges to our society, such as in the organisation of work and working times, the introduction of new methods of production and services, and the increase in the female participation rate in the labour force. A new work environment requires a re-evaluation of our existing legal framework and an adequate response reflecting our basic values. This is the challenge that our country is currently facing. |
| The aim of my Government is to achieve full | employment in Malta in a context of sustained ecomomic growth and development. To achieve this, sound economic and fiscal policies are required. The last budget was devised with this direction in mind. The amendments to the Industrial Development Act, which will place more emphasis on business promotion and development, have also been conceived within these parameters. |
| Further measures in this regard are an increased | budget allocation to the Employment and Training Corporation, the draft Business Promotion Act and the financial aid given by IPSE to restructuring enterprises for the re-training of their work force. This is complemented by the introduction of the National Minimum Curriculum that sets out the basis for a culture of lifelong learning, and the setting up of the Malta Vocational College for Arts, Science and Technology. |
| Malta's participation in the Leonardo da Vinci | European Programme will also strengthen our vocational education structure. The recent setting up of the Council for Professional and Vocational Qualifications aims to certify the level and area of competency of employees, thus making them more employable, as well as assisting employers in identifying appropriately skilled employees. |
| My Government's employment policy aims to achieve | social cohesion in so far as is practically possible. With increasing dependence on IT, and with a shift of our economy to service-oriented industries, there is the risk that disadvantaged groups, lacking in adequate IT training, become excluded from the labour force. To reduce this possibility, in addition to measures taken within the educational system, and the introduction of the National Minimum Curriculum, the Employment and Training Corporation is implementing a policy of IT dissemination at all levels. |
| Moreover, the enactment last year of the Equal | Opportunities (Persons with Disability) Act, is intended to reduce the social exclusion and discrimination of disabled persons. In addition, the proposed Gender Equality Act will ensure the equal treatment of women and men, as well as increase the female participation rate in the labour market. |
| My Government does not accept that employment | should be created or retained at the cost of the safety and health of workers. New challenges in this respect have arisen not only through the decision to adopt the acquis, but have actually been triggered by a new awareness within our society relating to health and safety. The aspirations of our work force to a better quality of life and well-being, as well as the personal hardship and remedial costs resulting from occupational injury and diseases, all justify the introduction of the stringent European norms in the health and safety field. |
| We are all aware that competitiveness and | productivity may be a bait for justifying minimal health and safety standards, as well as the reduction of the rest and leisure time that are so important for a person to retain his health and general well-being. This is a short-sighted approach. With regards to employment, the European model strives to ensure the dignity of our human resources. The European model will also act as a catalyst to direct our enterprises to more value-added activities and to areas of activity requiring more skilled and motivated labour, where the costs incurred by social as well as health and safety norms will be offset, and indeed justified, by more profit within a competitive market. |
| The adoption of the social acquis should primarily | be seen as an instrument for the creation of a safe and healthy workplace and of employment opportunities that correspond to society's needs and aspirations. At the same time the acquis poses a challenge to our society and in particular to employers. The acquis is a measurable yardstick, common to all European employers, ensuring that employees' rights are safeguarded and that there are no distortions within the single market. It is therefore a requirement for a level playing field in the single market. Whether the measures it brings are the result of full accession or of a free trade area is immaterial, but in any case essential. |
| My Government is proposing to negotiate transitional | periods with the Commission in those areas where this is appropriate. Whilst most of the labour law and health and safety norms will be in place and in force prior to the end of 2002, my Government is seeking transitional periods - ranging from one to four years - in the following areas: |
the organisation of Working Time;
noise at Work;
temporary mobile sites; and
use of work equipment.
| It is our belief that employers should be allowed a | sufficient period of time within which to gear themselves to comply with the EU directives covering these four areas. |
| Another key aspect of the European social policy is | the emphasis placed by the European Union on the importance of social dialogue. The underlying principle is that of subsidiarity in the field of social policy. The principal actor in the field of social policy at a national level is the state, and only by default will the EU take action. At the European level, this principle is applied by giving first priority to social partner agreements over community legislation. |
| This principle of subsidiarity is also expected to | be applied at national level in the social policy field, through social dialogue. The practice of consulting the social partners has been adopted in the formulation of the latest budget and Government is committed to giving an institutional status to the Malta Council for Economic Development, and to widen is scope to include social policy issues. Accordingly, even employment policy may in due course be referred to this Council for its comments. |
| It is envisaged that the first National Employment | Action Plan will be formulated in 2002. The process for the drawing up of such a plan has already been put in motion. This process will constitute a challenge to all social partners, as they will, in an indirect way, participate in the formulation of employment policy. |
| Malta's membership in the EU will open up job | opportunities abroad for Maltese citizens. This poses another challenge, albeit of a different nature, to our employers. The right of workers to freedom of movement is intended to give workers the opportunity to find more fulfilment in any part of Europe, without facing any artificial barriers. |
| The rationale underlying this right is that workers | should exercise the right to move within Europe, not because they are compelled to do so by reason of negative national circumstances, but because they want to better their situation. In other words, movement should be ignited by a pull factor rather than a push factor. Freedom of movement can actually serve as an instrument for technology and skills-transfer, if the right local environment is created to entice migrant workers to return to Malta. |
| To conclude, I see Malta's adoption of the acquis | as both an opportunity and a challenge to Maltese society. It is an opportunity to enhance our social policy legislation, with the consequent benefit to Maltese workers and society as a whole. It is also an opportunity to achieve our aspirations of a society that recognises and safeguards the dignity of our workers. |
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