A joint meeting between the Ministers of Labour and Finance and the social partners will take place today at 10:00, in what is being billed as a final opportunity to reach agreement on the Cost of Living Allowance (CoLA). The path to today’s session was opened by Thursday’s two-and-a-half-hour meeting between the two ministers and the unions, which was notably calmer than Wednesday’s encounter with the employers’ side.
Union demands and red lines
According to information seen by Politis, unions reiterated their core positions and limits. Key priorities include:
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Incorporation of CoLA into the national minimum wage so that more workers gradually benefit.
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Strict adherence to any terms agreed.
Unions also expect that, alongside tax reliefs for businesses, the government will take concrete steps to expand the share of workers covered by collective agreements. As for compromises, unions say they can accept the gradual restoration of CoLA to 100 percent and, crucially, will not block setting a 4 percent inflation threshold for CoLA payments.
What the union leaders said
PASIDY secretary general Stratis Matthaiou said unions had set out their positions and underscored the concessions already made, noting they were briefed on employers’ views.
PEO secretary general Sotiroula Charalambous said unions had again “made very clear” the parameters under which an agreement is possible, stressing both flexibility and the need for specific provisions that protect workers. If employers reject the framework and the government, as mediator, does not move to bridge gaps, “we will essentially face an impasse,” she warned.
SEK secretary general Andreas Matsas said the goal remains full restoration of CoLA with a prospect of extending it to cover all workers. After the ministers’ meeting, he sees “one last opportunity” to test whether conditions exist for convergence. There are “some points” that could enable a positive outcome, he added, while noting that unions are shaping a framework that could create the conditions for agreement.
DEOK president Stelios Christodoulou argued that if the expected January inflation rate for CoLA is low, this could help the dialogue end positively.
Employers coordinate next steps
Employers’ organisations, which reject the current negotiating framework, are coordinating their actions and are expected to hold a joint meeting on Tuesday to decide next steps, followed by a joint statement.
What today’s meeting must settle
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The path to restoring CoLA to 100 percent and the timetable for phasing.
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Whether CoLA will be embedded in the minimum wage architecture.
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Triggers and thresholds for payment, including the proposed 4 percent inflation cap.
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Linkages with tax reliefs for firms and parallel commitments to expand collective bargaining coverage.
The Labour and Finance ministries are acting as mediators. Today’s session is intended to determine whether a compromise is reachable or whether talks will be formally deemed at an impasse after months of negotiations.