Talks surrounding the future of the Cost of Living Allowance (CoLA) have ended without an agreement, leaving union leaders and workers in Cyprus awaiting further developments. The discussions, held on Tuesday, involved Labour Minister Yiannis Panayiotou and representatives from various trade unions.
The two-hour meeting followed earlier discussions on Monday between the minister and employers’ organisations Oev and CCCI. Although the government introduced four parameters aimed at modernising CoLA, union officials expressed concerns over the vagueness of these proposals.
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After the meeting, Sek general secretary Andreas Matsas remarked that no new information was provided to instil confidence in a positive outcome. He highlighted the unions’ request for clarifications on the government’s proposals, particularly regarding the suggestion to tie CoLA to economic growth rates, which he warned could compromise the allowance’s effectiveness.
Matsas also noted that the government suggested extending CoLA to all workers, but the specifics of this idea remained unclear. He stressed that unions have previously indicated that progress could be made by linking CoLA to the minimum wage, expanding collective agreements, and offering tax incentives to companies that comply.
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Sotiroula Charalambous, general secretary of Peo, expressed frustration at the government’s shifting definition of modernisation. She pointed out that unions have strong objections to any changes that could alter the original philosophy of CoLA. The ambiguity surrounding the extension of CoLA to all workers was also a significant concern for her.
Deok president Stelios Christodoulou echoed these sentiments, stating that the government’s proposals fundamentally change the nature of CoLA. He argued that previous agreements had already addressed concerns about linking CoLA to development rates and inflation. Christodoulou rejected the notion of setting specific growth thresholds, asserting that there is no evidence to support claims that CoLA increases inflation.
Future Steps and Worker Expectations
Despite the lack of progress, union leaders reiterated their commitment to continuing dialogue with the government. However, they warned that time is of the essence. Following a general strike last week, workers are eager for concrete advancements in the discussions.
Union representatives indicated that if clear answers are not forthcoming, there may be a need to convene another joint meeting to determine the next steps. The urgency of the situation underscores the importance of reaching a resolution on CoLA, which directly impacts many workers across Cyprus.
