Urgent Labour Reforms Needed to Address Construction Sector Challenges

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labour reforms — Rising construction costs and delays have prompted Cyprus’ Scientific and Technical Chamber (Etek) to demand immediate labour reforms to address severe shortages in the sector. During a recent meeting with Labour Minister Marinos Mousiouttas, Etek highlighted that these shortages are disrupting ongoing projects, inflating costs, and making affordable housing increasingly difficult to realise.

Labour reforms: Critical Shortages Affecting Projects

Etek’s announcement following the meeting revealed that the construction industry is grappling with acute shortages of skilled workers, including tradespeople, foremen, and site supervisors. Notably, there is a significant deficiency of steel fixers and formwork carpenters, which is exacerbating delays in project delivery.

Impact on Housing and Economy

The chamber cautioned that the ongoing labour shortages are not only delaying construction projects but also hindering the energy upgrading of buildings and the broader development prospects of the economy. With many crucial projects stalled, the stakes for affordable housing continue to rise.

Proposals for Reform

In light of these challenges, Etek urged the government to expedite the implementation of measures currently under discussion to fulfil the sector’s staffing needs. Among the proposals was the suggestion to accelerate and digitise the application process for hiring workers from third countries. This move aims to streamline recruitment and address the immediate demand for skilled labour.

Mapping Labour Market Needs

Additionally, Etek called for a comprehensive mapping of labour market needs, which would inform strategies to enhance the attractiveness of technical professions. They recommended the establishment of professional qualification standards to elevate the status of these roles.

Health and Safety Considerations

During the meeting, health and safety at construction sites emerged as a critical topic. Etek reiterated that safety should be viewed as a fundamental aspect of quality and professionalism, rather than merely a compliance issue. The chamber presented its own initiatives aimed at training and raising awareness among professionals, advocating for a collaborative approach with the Labour Ministry and the Department of Labour Inspection, focusing particularly on preventive measures.

Supporting New Graduates

The future of the practical training programme for newly qualified graduates in architecture, civil engineering, and electrical engineering was also discussed. Financed by the European Social Fund, this programme has significantly aided young engineers in their transition into the labour market. Etek requested a timely renewal of this programme for the upcoming programming period, recognising its importance for the sector.

Licensing Issues for Tower Cranes

Lastly, Etek addressed the cumbersome requirement for obtaining building permits for tower cranes, labelling the current licensing process as dysfunctional. The chamber proposed the development of a more rational licensing framework in collaboration with the Interior Ministry and the Cyprus Association of Building Contractors (Oseok) to improve efficiency in this area.

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