The cost-of-living allowance (CoLA) is directly linked to necessary tax reforms, according to Sek union general secretary Andreas Matsas. His comments come after trade unions accepted the government’s proposal regarding CoLA, while employers rejected it outright.
Matsas described the two issues as “communicating vessels,” emphasising that employers cannot dismiss proposals that benefit workers while expecting trade unions to accept reforms that favour their interests. He urged for cooperation between both sides, stating, “If there is something that can lead to an agreement, we will examine it.”
Following the trade unions’ acceptance, the House finance committee is set to commence discussions on tax reform bills. Matsas has made it clear that trade unions will not agree to any reforms unless they include advantages for workers. “We will be clear,” he stated, highlighting the need for a balanced approach in negotiations.
On the other hand, OEV director general Michalis Antoniou expressed that employers feel “in limbo.” They had agreed to several demands but found clauses in the government proposal that were not previously discussed, which contributed to their rejection of the plan.
Matsas pointed out the potential risks to labour relations that could arise from the current situation. He stressed that the rejection of the proposal by employers could complicate the handling of ongoing negotiations. Furthermore, he noted that the trade unions were still trying to decipher the employers’ reaction to the situation, particularly their aversion to the term “measures.”
Antoniou revealed that the employers’ organisations OEV and Keve had objections to a call by the ministers of finance and labour to allow the ministries to “implement measures to extend CoLA to more beneficiaries.” He stated that the full implementation of CoLA to cover all workers is crucial for the future of labour relations.
Despite the setback, Antoniou believes that dialogue must continue. He remarked, “The time has come for us to speak, because for so long we had kept quiet for the sake of the process.” He reiterated the employers’ commitment to negotiating a viable solution that would ensure all beneficiaries, particularly those with low salaries, receive 100% CoLA without jeopardising the state payroll or private sector viability.
The situation leaves uncertainty regarding the next steps. The government is expected to convene soon to discuss options, but it appears they view the dialogue as concluded, placing the responsibility back on social partners. Officials now face two choices: either resume dialogue until consensus is reached or legislate the CoLA issue.
