Trade unions have firmly rejected the government’s proposal regarding the cost-of-living allowance (CoLA), expressing concerns that it would lead to its degeneration, according to Pasydy secretary-general Stratis Mattheou.
- In light of the current deadlock, unions plan to convene again on Monday afternoon to consider their next course of action, including the possibility of additional measures.
During ongoing negotiations, unions have made significant concessions but feel that the latest government offer undermines the essence of CoLA. Mattheou stated, “The proposal leads to the degeneration of CoLA – essentially meaning that it would only be granted when certain conditions are met, whereas it should be given every year to offset salary erosion caused by inflation.”
The negotiations have been taking place with employers’ organisations Oev and Keve, facilitated by Labour Minister Yiannis Panayiotou. Despite the unions’ willingness to gradually restore CoLA to 100 per cent by 2028 and establish an inflation ceiling, the government’s proposal introduces conditions that involve linking CoLA to growth and inflation rates while setting a salary threshold above which the allowance would no longer be paid.
Following a joint meeting on Friday that included Finance Minister Makis Keravnos and Labour Minister Panayiotou, union leaders voiced their disappointment. Peo secretary-general Sotiroula Charalambous remarked, “Unfortunately, with what we heard today, we have gone backwards. It is obvious that we are at an impasse.” She emphasised the unions’ demand for CoLA to be applicable to all workers.
The labour ministry responded by stating that “intensive efforts” to reach an agreement will continue and acknowledged the positive approach shown by both unions and employers. Meanwhile, Cyprus Chamber of Commerce and Industry (Keve) secretary-general Philokypros Rousounidis stressed the employers’ commitment to social dialogue, indicating their willingness to engage in further discussions. “We are not very satisfied either, but we do not want to escalate the situation further and will await the next steps,” he stated.
In light of the current deadlock, unions plan to convene again on Monday afternoon to consider their next course of action, including the possibility of additional measures.
