National Action Plan for Employment 2004 MALTA 28th September 2004 Contents Page Executive Summary i. Section A: The Context and the Three Objectives A.1 Overview 1. A,2 Full Employment 4. A,3 Quality and Productivity 6. A.4 Social Inclusion 7. A.5 Employment strategy, essential measures and targets for 2010 8. Section B: The Guidelines B.1 Guideline 1 11. B.2 Guideline 2 16. B.3 Guideline 3 23. B.4 Guideline 4 28. B.5 Guideline 5 36. B.6 Guideline 6 38. B.7 Guideline 7 44. B.8 Guideline 8 49. B.9 Guideline 9 52. B.10 Guideline 10 55. Section C: Governance and Partnership C.1 Preparing the 2004 NAP 59. C.2 Use of Structural Funds 60. Annexes: A: Core Committee and Consultees 61. B: List of acronyms 62. C: Summary of feedback received 63. Executive Summary This National Action Plan on Employment sets out the principal employment strategies for the years 2005 to 2010, as well as the key measures under each strategy for the year 2005. The National Action Plan is a national document, based on consultation within and beyond government. The issues that arise in this document, and the measures intended to address them, have been identified as important by key stakeholders in the labour market. They are intended to serve the needs of various groups – employers, employees, jobseekers and groups facing labour market barriers. It is important to be clear about the scope of the Plan. It is not a job creation strategy, but aims to bring about levels of efficiency, skill and inclusion that should allow jobs to be created, and taken up, with greater ease by all. The National Action Plan will henceforth be an annual process of consultation, reporting and evaluation. The actions described are tangible and modest in scope, based as they are on an annual timeframe. However, it is believed that this planning process will go some way towards meeting the felt need to articulate and co-ordinate labour market policies and to provide an enabling framework for the creation of more and better jobs. This is the first National Action Plan on Employment to be submitted under the European Employment Strategy by Malta as a new member state. The National Action Plan (NAPemp) is the key instrument of this Strategy, submitted every year in accordance with the employment objectives and guidelines adopted by the European Council. In its present form, the Employment Strategy consists of three over- arching objectives relating to full employment, quality and productivity at work, and an inclusive labour market. It also includes ten action-oriented employment guidelines, which form the structure of this Plan. These guidelines will remain stable until 2006. Henceforth, Malta will be submitting a NAPemp in the autumn of every year. The European Employment Strategy is based on the open method of co-ordination, where the efforts and outcomes of member states’ labour market policies are made visible through an annual cycle of planning, implementation and reporting. The NAPs submitted by member states are reviewed by the member states collectively, and by the European Commission, after their submission in the autumn. A Joint Employment Report is then drawn up, presenting an account of progress at the European level as well as by individual member states. After the Spring Council of the following year, the Council issues broad employment policy recommendations as well as recommendations for individual member states. The subsequent NAP is to take account of these recommendations in its reporting. The European Employment Strategy is an important instrument to reach the targets set at the Lisbon Council in 2000, and at subsequent Councils, by 2010. In the field of employment, these targets include improved employment rates for all, but particularly women and older workers; improved participation in education and training; and the provision of childcare for children under three. This first NAP responds to these objectives and targets. In doing so, it takes into account the priorities i. agreed to on the signing of the Joint Assessment Paper of the Employment Policy Priorities of Malta in October 2001; the recommendations of the Employment Task Force in 2003; the Council Decision on guidelines for Member States’ Employment Policies for 2005, as well as the priorities highlighted for Malta for the same period. The NAPemp is structured in three main sections, in accordance with the template established by the European Commission. In Section A, a brief account is provided of the economic context of the Plan; an overview of progress towards the three overarching objectives; and employment forecasts based on the Labour Force Survey. This Section also describes the six strategic elements to be pursued between 2005 and 2010which reflect Malta’s employment policy priorities. These elements include: improving the levels of education and certification among the workforce; raising the national employment rate; enhancing the business environment; increasing productivity in the public sector; modernising the public employment service; and improving the governance of labour market policies. In Section B, these six strategies are broken down further within ten sections, which respond to each of the guidelines. Each section sets out the institutional infrastructure for each guideline; followed by a brief analysis of the strengths and weaknesses with respect to each guideline; key data; and the measures that are being taken, and that will be taken within the timeframe of this Plan. Furthermore, based on forecasts deriving from the Labour Force Survey and the anticipated impact of current and planned measures, quantitative targets are provided to account for how Malta may be expected to approach the Lisbon targets for 2010. In Section C, an account is given of the governance structure for the Plan, and of the drafting and consultation process that was followed. In essence, the Plan provides for a total of eighty one initiatives that will contribute to the development of the Maltese labour market, a number of which are novel and which have been stimulated through the consultation process in preparing this Plan. These include thirty projects that have been approved for funding under the European Social Fund (ESF) between 2004 and 2006. These projects aim to promote employability and adaptability; gender equality; lifelong learning and social inclusion; human resources development in Gozo; and to provide for ESF technical assistance. Total expenditure on ESF projects is expected to amount to EUR12.16 million, which will be jointly funded by the Maltese Government and the European Union. In addition, projects have also been approved for funding under the European Regional Development Fund, which will allow for infrastructural developments to support the broad aims of the ESF. In parallel to the implementation of these measures, the institutional capacity of government and the social partners to define, co-ordinate and evaluate employment policy will be further strengthened. In particular, co-ordination will be strengthened with regard to ensuring coherence between the Broad Economic Policy Guidelines and the National Action Plan on Social Inclusion. ii. This Plan was developed by a Core Committee chaired by the Minister responsible for employment. The Committee met on a regular basis as from February 2004, to review and develop draft chapters of the document as prepared by the drafting team within the Employment and Training Corporation. In parallel, key stakeholders were consulted as to their perceptions of the key issues surrounding each guideline, and any measures they have taken or planned in this regard. A first draft document was submitted to Cabinet for approval to enter this current phase of consultation. Approval was given in July 2004, followed by consultation in August and September 2004. A final draft was drawn up and submitted to the European Commission on the 1st October 2004 together with an appendix summarising consultee feedback. The document will also be reviewed by the Permanent Parliamentary Committee on Social Affairs by the end of November 2004. It is to be noted that this Plan is one amongst other key documents aimed at securing sustainable social and economic development in Malta. Government is, at present, going through the process of bringing about a number of changes towards this end. These include the Convergence Programme, reforms in the Pensions and Health sectors, a National Action Plan for Social Inclusion, and a Lifelong Learning Strategy among others. Work is also underway towards the development of a comprehensive Social Pact. iii. A: The National Context and Progress towards the Objectives In the 2000 Lisbon European Council, EU Member States established an ambitious long-term objective of strengthening the Union’s competitiveness and encouraging employment and sustainable growth by closely co-ordinating economic policy, employment policy and social policy. The Guidelines and Recommendations of the European Employment Strategy (EES) represent a vital instrument for attaining the goals set in the Lisbon Strategy. The Council of the European Union adopts Employment Guidelines in line with the Broad Economic Policy Guidelines (BEPGs). In 2003, the EES was reviewed with the aim of providing a stronger focus on the Lisbon targets in the employment fields. Full employment, improving job quality and productivity at work, and greater social cohesion and inclusion became the overarching objectives. Moreover, the new European Employment Strategy contains ten specific guidelines upon which this Plan is structured. Malta, like all new Member States, was called to submit a National Action Plan for Employment (NAPemp) for the first time in 2004 This followed on the signing of the Joint Assessment Paper of the Employment Policy Priorities of Malta, co-signed by the European Commission and the Government of Malta in October 2001. This NAPemp was structured according to the ten guidelines and the overarching objectives.