Trade union representatives left a meeting with Labour Minister Yiannis Panayiotou regarding the cost-of-living allowance (CoLA) without providing any statements to the media.
- Trade union representatives left a meeting with Labour Minister Yiannis Panayiotou regarding the cost-of-living allowance (CoLA) without providing any statements to the media.
As they departed from the labour ministry on Friday, a group of journalists attempted to gather comments, but the representatives chose to remain silent. Panayiotou is expected to hold discussions soon with both the Cyprus Chamber of Commerce and Industry (Keve) and the Employers’ and Industrialists’ Federation (Oev). Following these meetings, he plans to reconvene with trade union leaders.
Warnings of Escalation
Just days before this meeting, Andreas Matsas, secretary-general of trade union Sek, highlighted the potential for increasing measures if no results were achieved. He stated, “Depending on the positions or the approach which will be analysed for us, we have made a decision and are authorised to activate decisions to escalate measures if this is deemed appropriate.” This statement suggests that a general strike could be on the horizon if negotiations stall.
Recent Strikes and Public Impact
A three-hour general strike held two weeks ago had a significant impact, bringing the island to a standstill as workers demanded the restoration of CoLA in its original form. This allowance is seen as vital for maintaining workers’ purchasing power and supporting living standards. Public services and transport were notably disrupted, affecting over 15,000 airline passengers and resulting in the cancellation of more than 50 flights.
Sotiroula Charalambous, secretary-general of the trade union Peo, remarked that the previous strike was “the first step in a series of measures, until we achieve the goal, which is collective and universal.”
Government Officials’ Perspectives
Finance Minister Makis Keravnos expressed disbelief that workers and employers had yet to reach an agreement on the CoLA issue, especially given Cyprus’s unique position within the European Union of currently having zero inflation. He urged for “social dialogue” between all parties involved, emphasising its importance in resolving critical issues.
Meanwhile, Oev and Keve recently shared legal opinions suggesting that regulating CoLA for the private sector by law might be unconstitutional. This advice, prepared by Achilleas Emilianides, indicates that imposing terms not agreed upon by all parties infringe upon rights protected by the constitution.
Calls for Legal Clarity
In light of these developments, Matsas urged the government to clarify the legality of its proposal to expand CoLA coverage for all workers, even through legislation. He expressed concern that the current handling of the issue could jeopardise the smooth progression of labour relations.
Historical Context of CoLA
Earlier this year, former Oev chairman Antonis Antoniou openly stated his opposition to CoLA, suggesting it should have been phased out. He advocated for alternative tools to support employee progress, while indicating a willingness to continue CoLA under certain conditions. Similarly, Keve chairman Philokypros Rousounides described CoLA as an “anachronistic institution” in need of modernisation or replacement.
