The Executive Committee of the Cyprus Chamber of Commerce and Industry (KEVE) convened in an extraordinary session on Friday and unanimously confirmed its decision to reject the proposed Framework Agreement on the Cost-of-Living Allowance (CoLA), as presented during the joint meeting with the Employers and Industrialists Federation (OEB) on Wednesday.
In a statement, KEVE said its decision was based on the position that any framework on CoLA “must take into account the repeated recommendations of the IMF and the European Central Bank, modernise the institution of CoLA, apply a progressive structure in favour of low-income earners to whom the system is directed, and avoid generating inflationary pressures in the economy.”
KEVE called on both the government and the trade unions to return to the negotiating table with a constructive spirit, seeking an agreement that benefits the national economy, supports low-wage earners, and includes safeguards that ensure the country’s long-term prosperity and development.
The organisation added that the present announcement was issued in full coordination with the leadership of OEB.