A critical meeting on the future of the Automatic Cost of Living Allowance (COLA/ATA) takes place today at 16:00 at the Ministry of Labour, with Minister Yiannis Panayiotou, employers’ organisations and trade unions all at the table.
The talks are seen as decisive, since the 2023 transitional agreement has expired without a new arrangement in place. Unions are warning of nationwide strike action if there is no progress, with a final decision expected at Monday’s all-union assembly.
Deep Divide Between Employers and Unions
The gap between the two sides remains wide. Trade unions are demanding the full restoration of ATA to 100% and its extension to cover the minimum wage. Employers’ groups, however, are pushing for a “modernised” mechanism with safeguards, warning that full implementation could pose serious fiscal risks.
Both sides appear cautious ahead of the meeting, as the Ministry has not clarified whether it intends to present a new proposal or simply buy time before Monday’s all-union gathering.
Calls for Dialogue, Warnings of Escalation
In comments to CNA, the Employers and Industrialists Federation (OEB) and the Chamber of Commerce and Industry (KEVE) urged that dialogue be exhausted, stressing that a full return of ATA would drive up rigid costs and undermine economic stability.
Union representatives, on the other hand, accused employers of adopting extreme positions and called on the government to take a clear stand.
