Tensions have been high in the past 12 months, after government’s decision to retroactively revise the water and electricity tariffs brought all 18 trade unions together for an unprecedented (and short-lived) show of unity
April 2008 Enemalta commissions KPMG to draw up a new system for utility tariffs. The declared aim is to phase out government subsidies to Malta’s only energy provider. No mention is made of this report in either Budget 2008, or in previous discussions with MCESD.
October 2008 Infrastructure, Transport and Communications minister Austin Gatt declares that “the time for discussion is over”, and announces new water and electricity tariffs with immediate effect.
Social partners write a joint letter to Prime Minister Lawrence Gonzi, declaring that there was ‘no agreement’ over governement proposals.
In a meeting with MCESD, government presents social partners with a ‘final’ decision on the new tariffs. MCESD chairman Sonny Portelli announces failure of preliminary round of talks.
In subsequent meetings Government revises its original proposals: industry capping to be removed over three years instead of immediately. Gatt also reveals that subsidies cost Enemalta €58 million a year.
After an extraordinary meeting, MCESD requests government to postpone new tariffs until April 2009. But Government announces that the new tariffs will be introduced immediately, and backdated to 1 October.
MCESD implores government to reconsider; Opposition leader Joseph Muscat announces a ‘demonstration of courage’ against new tariffs on 9 November.
November 2008 No reference to new utility tariffs in Finance Minister’s Tonio Fenech’s budget speech for 2009.
General Workers’ Union announces its own ‘national demonstration’ for 13 November.
Malta Union of Teachers and Malta Union of Midwives and Nurses announce their participation in the GWU demonstration. The protest is postponed by one day when it becomes known that, for the first time in trade union history, all Malta’s unions had agreed to take part.
The demonstration, attended by 18 unions, takes place on 14 November. Union leaders demand reopening of talks with Prime Minister.
A meeting with Prime Minister takes place at Castille on 18 November. Union representatives submit nine proposals for Gonzi’s consideration. Four days later, after a five-hour meeting, union leaders emerge to announce that an agreement had been reached.
Gonzi confirms this agreement in writing on the 24th.
December 2008 Government publishes new utility tariffs, backdated to October 1 as originally planned. The following day, the Confederation of Maltese Trade Unions expels the MUT for “unfounded and unfair attacks” on CMTU leadership.
The ‘united front’ against the tariffs appears to fragment, with the Union Haddiema Maghqudin and CMTU openly agreeing with the government’s new proposals.
Eleven of the original 18 unions write to the PM pointing out discrepancies between the new system and promises made in November. MUT separately announces its formal rupture with CMTU.
Gonzi refuses to meet the 11 aggrieved unions, despite warning of industrial action. Instead, the PM directs the unions to meet with the Malta Resources Authority.
January 2009
The 11 unions announce directives to members to not pay their utility bills before the 45-day maximum limit for payment stipulated by WSC and Enemalta.
Labour MP Joe Mizzi writes to Consumer Affairs director Mireille Vella, complaining that the new tariffs violate the EU Accession Treaty, among other international and local laws.
The Small Business Chamber (GRTU) files a judicial protest against government, Enemalta and the MRA, arguing that tariff revision was discriminatory towards small businesses.
Prime Minister hints that the new rates would decrease eventually in step with international price of oil; Gonzi also defends new tariffs as a ‘disincentive’ to water and electricity wastage.
Opposition leader presents a Parliamentary motion to annul the legal notices whereby the new tariffs were originally introduced. Muscat repeats his claim that the new tariffs were illegal according to both European and Maltese law.
UHM urges government to revise tariffs downwards as soon as possible, sparking a war of words with GWU, whose daily newspaper l-orizzont accuses UHM leadership of performing a U-turn for accepting the tariff revision in principle. UHM accuses GWU of presenting proposals which would cripple the country economically.
The 11 unions jointly announce that they had been given assurances by MRA chairman Carmel Ellul that the downward revision of tariffs would be retroactively effective from 1 October.
Ellul denies making any such claim, eliciting repeated calls for his resignation by all 11 union leaders.
February 2009 UHM calls on government to keep its promise and decrease tariffs. Opposition leader Muscat calls for the withdrawal of revised tariffs altogether.
MP Joe Mizzi files judicial protest against the Consumer Affairs Director for failing to reply to his letter dated 19 January.
Joseph Muscat accuses government of trying to postpone the Parliamentary debate on the new tariffs until after these were revised, as per government’s previous declaration, in March.
MRA extends period of consultation over new tariffs until 4 March, effectively postponing tariff revision until mid-March.
Muscat accuses government of ‘playing for time’, and insists that Gonzi owes the public an apology for delaying the downward revision.
March 2009 Government finally announces downward revision of tariffs as international oil price plummets. New rates effective from April 2009, sparking complaints from several union leaders, who insist that the revision should be retroactive to October 2008, as allegedly guaranteed by the MRA.
June 2009 Utility tariffs lowered by a further 20% as price of oil drops to $40 a barrel.
October 2009 As Malta braces itself for Budget 2010, Prime Minister Gonzi hints that utility tariffs may once again increase, sparking fresh fears of social and industrial unrest.
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