Cyprus’s major trade unions are preparing for a showdown with the government over the full restoration of the Cost-of-Living Allowance (CoLA), warning that they will escalate strike action if necessary.
With a meeting scheduled for Friday with the Minister of Labour, unions are demanding clear answers on how the government intends to implement its stated policy of “CoLA for all.”
100% CoLA or industrial action
Unions are united in rejecting the idea of a tiered or partial CoLA, arguing that it fundamentally distorts the purpose of the mechanism. They insist that CoLA should be restored to 100%, across the board, without exemptions or reductions.
At a joint trade union meeting held this week, the leadership of SEK, PEO, and DEOK reviewed the success of the three-hour strike held on 11 September, describing it as a clear message of determination to defend CoLA in its original form.
Warning of escalation if no agreement reached
Speaking after the meeting, SEK General Secretary Andreas Matsas said unions will attend Friday’s talks “in good faith”, but are fully authorised to escalate industrial action if discussions fail to deliver results.
“We call on the Ministry and the employers to engage in a meaningful process within the framework of the existing transitional agreement. The aim must be the full restoration of CoLA,” Matsas said.
He added that the unions also want to see the allowance extended to all workers — including those on the national minimum wage — through collective agreements that ensure sectoral coverage.
“Anything outside the agreed framework — as has been attempted for months, particularly by employers — undermines the institution, the process, and turns CoLA into a scapegoat,” he warned.
Labour minister under pressure
PEO General Secretary Sotiroula Charalambous echoed the position, saying the Minister is fully aware of the unions’ stance, which aligns with the principle of “CoLA in its true philosophy.”
Earlier this week, Labour Minister Yiannis Panayiotou reaffirmed the government’s commitment to social dialogue:
“We remain dedicated to social dialogue and are seeking common ground to reach an agreement on the future of the CoLA mechanism,” he said.
Unions, however, are expecting more than general statements. They are demanding specifics — and decisive commitments — at Friday’s meeting.
Commenting on the union leaders' statements, OEB General Director Michalis Antoniou told Politis that the mere fact that no measures were announced is a gesture that allows time for negotiations.
