The government's forthcoming detailed outline of its policy on “CoLA for all” is expected to serve as a critical turning point in the negotiations and a determinant of industrial peace, following a visible impasse.
Labour Minister Yiannis Panayiotou faces a particularly sensitive challenge, as he attempts to defuse the tensions sparked by the government’s sudden announcement of a CoLA framework applying to all.
So far, the separate meetings held by the minister with employers and trade unions have not yielded progress. Employers’ federations KEVE and OEB have firmly rejected the "CoLA for all" proposal and are preparing for a joint coordination meeting on 2 October. On the other side, trade unions remain sceptical of the government's broader framework but are open to hearing a clear explanation of how "CoLA for all" will be defined and implemented.
During a two-hour meeting on Wednesday, the unions requested clarifications point by point on the verbal outline presented last week. While they received some responses, they expressed dissatisfaction with the lack of clear assurances.
Unions are now pressing for clarity on the legal or regulatory mechanism that will implement "CoLA for all" — whether through legislation, or by other tools such as the EU directive on extending collective bargaining coverage to 80% of the workforce, or integrating CoLA into the minimum wage. According to a trade union source, the Ministry of Labour has left all scenarios open.
The key parameters of the modernised CoLA framework, as outlined verbally by the minister, include:
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Universal extension to cover all workers,
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Fair implementation to restore contribution levels, with particular focus on low and middle incomes,
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And activation conditions designed to avoid growth slowdowns and safeguards to prevent inflationary pressures.
Concerns confirmed
PEO Secretary-General Sotiroula Charalambous told Politis that the unions’ concerns had been confirmed.
“Our fears that there are attempts to alter the philosophy of CoLA have been validated. The inclusion of growth and inflation metrics undermines the essence of the institution.”
SEK Secretary-General Andreas Matsas said:
“We listened to the government's explanations, but we haven’t received responses that create a sense of positive expectation.”
He made clear that linking CoLA to economic growth is unacceptable:
“Are we supposed to receive CoLA only occasionally and under conditions?” he asked, highlighting the deep gap between trade unions and the government-employer stance.
DEOK President Stelios Christodoulou also struck a sceptical tone, saying:
“After the meeting with the minister, optimism is limited.”
He added that some of the verbal proposals were “surprising” and others “aligned too closely with employer positions.”
“For us, a fairer CoLA doesn’t mean 50% for one, 80% for another, and 100% for someone else. That’s not CoLA,” he stressed.
The dialogue between unions and the minister will continue, with a follow-up meeting expected by Friday. If no progress is made, unions plan to convene a broader union meeting to assess the situation and consider escalating their actions.
