113th Session of the International Labour Conference
Address by Mr. Joseph Farrugia
Employers’ Delegate – Malta
Wednesday, 11th June 2025
The report of the Director General gives an outlook of the world as passing through ‘a time of discontent’, one where the distinction between crisis and normality is blurred. Against this bleak, but realistic backdrop, he projects a message of resilience and hope, also promoting the idea of a social contract, one which: ‘places jobs and rights at the core of economic and financial policies’.
A valid concern among social partners is the manner in which the world of work is being transformed by AI. This is affecting all aspects of business, from supply chains to marketing, and also work organisation. Already, it is estimated that 25% of jobs worldwide, across all economic sectors, are exposed to AI, and this highlights the importance of re-skilling employees to be able to make themselves employable in higher value-added economic activities. In these circumstances, it comes as no surprise that the agenda of this year’s conference reflects the transformation occurring in many economies throughout the world. The digital transformation is creating new forms of work and hence the expansion of the platform economy. Platform work should not be seen as an antonym to decent work. The dialogue taking place at this conference should ensure that platform work opportunities can be beneficial to workers and businesses if applied within appropriate parameters which allow businesses flexibility to be productive and to compete, whilst protecting employees from abusive practices. Such transformation should be seen as a means of mobilising human resources towards higher quality employment, and, through social dialogue, social partners can achieve positive outcomes.
Malta has well-established social dialogue structures, empowered by a diversity of unions, employer bodies and civil society organisations. Over the past months social partners have reached consensus on legislation to regulate recruitment agencies, and there have also been constructive discussions about labour migration policies, which are still ongoing. These debates reflect the rapidly changing demographics of the Maltese labour market over the past decade, with a third of workers in Malta coming from other countries. The expansion in the overall population, combined with a falling fertility rate create strong challenges regarding the future of our country. With limited land and natural resources, these demographic shifts have an impact on population density, environmental sustainability, and pressures on the general infrastructure. This calls for long term planning, and employers are collaborating with other stakeholders in the design of Vision 2050, a national initiative intended to build a resilient future for Malta.
The Maltese economy is experiencing positive growth, mostly driven by the private sector which is predominantly composed of SMEs. Concurrently, there is also an increasing awareness that GDP growth does not automatically translate into a better quality of life for citizens. As aptly expounded in the Director General’s report, jobs, rights and growth are three pillars that can work as a dynamic triangle if supported by the right policies, institutions, resources, dialogue and political will. Rights, however, invariably carry obligations, and the improvement of employee rights and working conditions must work in tandem with enhanced productivity, together with an enabling environment for sustainable enterprises.
Governance and transparency also have a role to play in supporting these pillars. The strengthening of compliance structures is something that Maltese employers have always supported, as a means of promoting a level playing field among businesses that encourages compliance even in employment practices. However, employers expect government to set an example. Public procurement is more inclined towards direct orders to bypass a fair tendering process. Recent efforts to suppress citizens’ rights to initiate magisterial enquiries are eroding public trust in institutions.
This fading trust is being experienced internationally, as highlighted in the Director General’s report. It is one of the priorities of social dialogue to rebuild such trust, especially among young people who may feel disillusioned and helpless when faced with the uncertainties and instability around them. The seventeen principles of the Sustainable Development Goals, shine a light on how the world can become a better place for all. International relations cannot be allowed to degenerate towards being based on predatory, transactional and protectionist values. It is through the collaborative effort of all countries that global challenges may be surpassed. The ILO, as a United Nations institution, and through its mandate and focus on social dialogue and the world of work, has an ever-increasing role to play in this scenario. In the words of the Director General – ‘We have an institutional responsibility to respond’.