Trade unions have levelled serious allegations over the "renting" of workers in the construction industry, speaking of a two-tier workforce and conditions resembling a labour dark age. Following discussions with the Ministry of Labour on what they describe as the growing dimensions of the problem, they are warning of industrial action if the issue is not resolved by September.
The Ministry of Labour is firmly opposed to all forms of worker "renting," commonly referred to as trafficking, Labour Minister Marinos Mousiouttas told Politis.
"The ministry is taking all necessary measures to prevent such phenomena, which among other things tarnish Cyprus' reputation internationally," he said. "The competent services will intensify inspections," he added, noting that the ministry is also examining a range of proposals to address labour shortages, particularly in the construction sector.
According to the unions, workers, mainly from third countries, are being "rented" to carry out specific projects on construction sites, often working long hours without enjoying the rights guaranteed to them by law.
In a statement issued on Friday, the governing boards of the construction unions of PEO, O.V.OI.E.K-SEK and DEOK stressed that the phenomenon of "rented workers" constitutes a "blatant violation of legislation", specifically the Temporary Agency Work Law of 2012 (Law 174(I)/2012), which expressly prohibits the employment of temporary agency workers in the construction and tourism sectors.
Adamos Katalanos, general secretary of the PEO construction workers' union, told Politis that "we are living through a labour dark age and the issue is very serious".
"Workers, mainly from third countries, but also Greek Pontians, Turkish Cypriots and even Greek Cypriots, are being used as rented tools," he said.
At the same time, he argues that workers are under-declared, resulting in significant losses for social insurance funds.
According to Katalanos, legislation concerning contractor liability is also still pending and should be submitted to parliament for approval without delay.
And in other sectors too...
"We are seeing 'rented' workers not only in construction but also in other sectors of the economy," Giorgos Kasouris, general secretary of the Cyprus Federation of Industrial, Building and General Workers (O.V.I.E.K.-SEK), told Politis.
He explained that workers from third countries are hired out for days, weeks or longer until a specific project is completed.
"We met with the Labour Minister on 26 June regarding this issue, which we consider extremely serious," he said, warning that "if the matter is not resolved by September, we will proceed with dynamic measures."
Kasouris also noted that a specific provision in the law requiring the establishment of a technical committee has not been implemented.
"We expect the government to immediately revise its strategy for the employment of third-country nationals so that monitoring committees overseeing the implementation of the Strategy for the Employment of Third-Country Nationals can be re-established. These committees have been inactive since February 2023," he said.
At present, he added, "working conditions, living conditions and compliance with collective agreements remain in the dark."
"Tolerance of such practices strengthens worker exploitation, creates conditions of unfair competition among businesses and undermines the proper functioning of the labour market," the Cyprus Federation of Hotel, Catering and Recreation Centre Employees (OUXEKA-SEK) said in a statement yesterday.
OUXEKA-SEK reiterated the need for an immediate review of the employment strategy for third-country nationals and called on the state to intensify inspections and take decisive action against illegal worker subleasing practices.
"The labour market needs rules, transparency and strict enforcement of legislation. Tolerance and inaction are no longer an option," it stressed.
"For our part, during our daily visits to construction sites we encounter individuals from third countries working as 'rented' employees," said Renos Savva, general secretary of DEOK's construction workers' union.
"There is exploitation of workers, creating a two-speed workforce," he said, adding that, apart from long working hours, many are denied benefits to which they are entitled, such as provident fund contributions and a 13th-month salary.
What the law provides
Under the Employees in the Construction Industry (Basic Terms of Service) Law of 2020 (52(I)/2020), the following minimum terms and conditions must be observed by all contractors and employers engaged in construction work:
(a) Working hours and overtime
(b) Public holidays
(c) Provident fund contributions
(d) Gratuity payments
Every contractor and employer is required to maintain a register of employees working on an active construction site and make it available to an inspector upon request.
The minister may appoint designated inspectors to ensure the proper implementation of the law.
No employer may require an employee to work beyond the hours agreed under the sectoral collective agreement.
Employees are also entitled to rest on public holidays and other days specified in the collective agreement.
The construction industry's provident fund operates under specific regulations agreed between the parties, while employer and employee contributions are determined through the sectoral collective agreement and paid monthly into the relevant provident fund.
Each employer is also required to pay a gratuity for every employee, with the amount determined by the applicable collective agreement.
Article 11 of the law provides for the establishment of a Technical Committee to assist in the implementation of the sectoral collective agreement and advise the Minister of Labour, Welfare and Social Insurance.
The committee is chaired by the Director-General of the ministry or a representative and includes representatives of OSEOK, OEB, SEK, PEO and DEOK.
OSEOK condemns all illegal practices
The Cyprus Federation of Building Contractors Associations (OSEOK) said it unequivocally condemns any illegal actions by contractors or businesses operating in the sector.
In a statement, it noted that, together with trade unions and the Ministry of Labour, it has contributed to the development of a regulated framework governing employment conditions in the construction industry and that all parties are obliged to comply with it.
"Those who violate this framework create conditions of unfair competition against our members and against businesses that operate responsibly, legally and consistently," it said.
At the same time, OSEOK stressed that the construction sector is experiencing a serious shortage of suitable labour.
"Many businesses struggle, or are unable, to meet their contractual obligations because of genuine labour shortages in the market," it noted.
"Permanent and substantive solutions from the state are required for this serious issue. We acknowledge the significant improvements and acceleration of procedures by the competent ministry, but labour needs in the sector are growing at a much faster pace."
However, it added, this genuine problem cannot under any circumstances serve as an excuse for violations of the law or for practices that harm workers, fair competition and the credibility of the sector.
