Show me the Money

As trade unions in Cyprus rally to restore the Cost of Living Allowance (CoLA), it is vital to consider the broader implications of their approach. While their objective to protect their members from rising living costs is commendable, their singular focus on an unconditional CoLA may inadvertently exclude the very employees who need it the most.

Historically, CoLA has been a lifeline for many workers, especially in times of economic strain. However, the current union strategy raises questions about equity and effectiveness. The employees who benefit the least from this allowance tend to come from sectors like banking and public service, where salaries are relatively high. By concentrating efforts on securing CoLA for a select group, unions risk overlooking the plight of the low-wage employees who struggle to make ends meet.

Instead of simply pushing for a reinstatement of CoLA, unions should adopt a more inclusive approach aimed at improving salaries for all workers in need. This means advocating for adjustments that consider the broader economic landscape, targeting those in sectors most affected by rising costs. An expanded focus would help ensure that CoLA becomes a tool for widespread relief rather than a privilege for a few.

Moreover, the insistence on unconditional CoLA could backfire. It risks making the allowance less attractive for employers, potentially leading to a situation where fewer employees, rather than more, can benefit from it. As companies face the dual challenge of retaining talent and managing costs, a rigid CoLA mandate may cause them to reevaluate their compensation strategies altogether. Ultimately, this could exacerbate the very inequities unions aim to resolve.

At this juncture, it is incumbent upon the government to step in and create a more equitable framework for CoLA distribution. Offering CoLA to a wider range of employees, even if it involves capping benefits for high earners, would ensure a more just allocation of resources. The goal should not be to enhance the financial position of a small segment of the workforce but to provide comprehensive support that uplifts all those affected by the rising cost of living.

Trade unions have the potential to be powerful advocates for change. However, they must expand their vision beyond the immediate needs of their members and consider the broader impact of their actions. By doing so, they can cultivate a more inclusive and fair economic environment, ensuring that no worker is left behind. Now is the time for all stakeholders -unions, employers, and the government- to collaborate and address the pressing concerns of workers across Cyprus, bridging the gap between those who have and those who have not.

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Instead of addressing the pressing needs of the majority, unions prioritize CoLA.

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