For Cyprus’ trade union movement, strikes are now seen as the only path forward in the battle over the Cost-of-Living Allowance (COLA), union leaders told Politis, after the latest mediation attempt by Labour Minister Yiannis Panayiotou failed to produce results.
Following a four-hour joint meeting of social partners with the minister late Friday evening, it became clear that positions remain entrenched, with both sides holding firm to the stances they have expressed in recent months.
While the minister outlined certain parameters for COLA’s application, unions rejected them outright, demanding its full restoration at 100%. They argue that employers are resisting any increase in payroll costs.
Andreas Matsas, General Secretary of SEK, told Politis: “It is evident that there is a serious divergence on the principle of COLA, and no positive conclusion can be foreseen based on what was discussed.” He confirmed that unions will convene a joint meeting on Monday to brief other labour groups on the deadlock and decide next steps.
Sotiroula Charalambous, General Secretary of PEO, echoed that assessment, saying: “Nothing we heard changes the facts so far. Employers are pushing for structural changes to the system and extra conditions before COLA is triggered, all aimed at avoiding higher overall costs.”
Stelios Christodoulou, head of DEOK, was even more blunt: “What employers want is to strip COLA of its philosophy. Based on what we heard, it would exist only on paper, not in substance.” He said the union movement remains united and will likely move towards strike action to defend what he called “a measure of social justice” at a time when workers’ salaries and benefits have been hit by global crises and employer intransigence.
Employers Hold Their Ground
From the employers’ side, Filokypros Rousounides, Director General of the Cyprus Chamber of Commerce and Industry (KEVE), admitted there is “still a long way to go.” He said the minister’s verbal outline would form the basis for further discussion, with a written communication expected soon, though no formal proposal is on the table.
Michael Antoniou, Director General of the Employers and Industrialists Federation (OEB), told Politis that employers approach talks “in good faith and with a constructive spirit,” with the aim of finalising a permanent system in line with the 2023 agreement. “The system must be rationalised so labour relations and the economy are not disrupted, allowing us to focus on the real and difficult issues we face together,” he said.
According to Politis sources, one parameter suggested by the minister is linking COLA payments to the pace of economic growth, while also discussing how widely it should apply and at what percentage.
Labour Ministry Still Hopes for Convergence
In a statement, the Ministry of Labour said that as part of the ongoing social dialogue on COLA’s future, it had met with social partners to discuss proposals on the next steps of the mediation process.
“Despite existing differences, the Ministry of Labour and Social Insurance continues efforts to shape acceptable convergences, since constructive contributions from both sides are essential to reaching an agreement,” it noted.