The President of the Republic met on Sunday evening with the heads of the Employers and Industrialists Federation and the Cyprus Chamber of Commerce and Industry, Giorgos Pantelidis and Stavros Stavrou. A follow-up meeting with union leaders is scheduled for today at 19:00.
State of Play on the CoLA Talks
As previously reported, Friday’s marathon meeting produced progress on areas of convergence, but two issues remain unresolved. Unions want CoLA calculated and paid annually in the minimum wage review, while employers prefer a two-year cycle, and there is a disagreement over the scale of employer tax relief. The government, however, favors 15 percent reimbursement of CoLA granted each year compared with the original 50 percent in the framework. At Sunday night’s meeting, officials reportedly offered clarifications on the tax relief element in the context of the planned tax reform.
Today’s Meeting at the Presidential Palace
At 19:00 this evening, President Nikos Christodoulides will meet union leaders to shape the final framework on CoLA.
Last night, the President met employer organisations in the presence of the Finance and Labour Ministers. The discussion covered the CoLA framework, tax reform and broader economic issues.
Union Position
Speaking on Politis Radio 107.6 and 97.6, Dr Andreas Matsas, Secretary General of the Confederation of Cypriot Workers (SEK), said unions were informed late last night after the employer meeting and there was an indication the President would try to move the CoLA issue forward.
On substance, Dr Matsas said full restoration of CoLA would be phased in across three periods, with a 4 percent inflation cap as a safeguard. He added that CoLA will be incorporated into the minimum wage and that a tiered approach is off the table because it undermines the mechanism.
The new arrangement, he said, concerns roughly 55,000 workers and is intended as a first step toward extending CoLA to all employees. CoLA will be paid pro rata to hours worked to preserve purchasing power and address past inequities.
Asked whether the negotiations are worth the effort, Dr Matsas stressed the aim from day one has been to secure and fully reinstate the mechanism, building stability without unravelling previous gains. He noted that the next stage, revising the minimum wage, will be equally important and complex.
He also pointed to the pending decision of the Court of Justice of the European Union on the European minimum wage, which could affect collective agreements and the extension of CoLA to all workers.
Government Line
Government Spokesman Konstantinos Letymbiotis posted on X that, following Friday’s meeting between ministers, unions and employer groups, a convergence framework for the CoLA dialogue was formed and has been accepted in principle by union leaders.
Employer organisations plan a joint session on Wednesday to take their final position. The President will meet union leaders on Monday to wrap up the dialogue and settle the remaining details.