A three-hour nationwide strike is set to go ahead this Thursday, following the collapse of talks over the future of the Cost of Living Allowance (CoLA). In a joint statement, trade unions SEK, PEO, PASYDY, and DEOK confirmed the industrial action, citing employers’ refusal to budge from their longstanding position in favour of altering the eligibility criteria—changes that unions argue would fundamentally erode the institution of CoLA.
Employers also rejected any move to increase the current level of CoLA payments, dismissing the Labour Minister’s proposal for a universal scheme.
“No positive development emerged in today’s meeting,” the unions declared, urging workers across sectors to take part “massively and dynamically” in Thursday’s walkout. “Together, we fight for CoLA for all—CoLA as it was intended,” they added.
Labour Minister calls for dialogue, unions see deadlock
The meeting, convened by Minister of Labour and Social Insurance Yiannis Panayiotou, brought together unions and employer associations in a last-minute attempt to prevent escalation. In a post-meeting statement, the Minister reiterated the government's commitment to a people-centred employment policy focused on strengthening incomes, protecting wage value, and ensuring fairer distribution of economic growth.
While stressing the government's aim to reach a permanent and comprehensive CoLA agreement by the end of 2025, he also warned that social partners must approach the mediation process with constructive intent. “Efforts to modernise CoLA must proceed through mutual agreement,” he said, calling on all parties to avoid divisive rhetoric and unilateral actions—particularly strikes—that widen the gap between stakeholders.
The government’s current vision for reform includes expanding CoLA coverage to all workers, recalibrating its payment structure to benefit low- and middle-income earners, and embedding safeguards to prevent inflationary pressures or growth slowdowns. Still, union leaders argue that employers have shown no real willingness to engage.
Thursday strike to disrupt key services island-wide
Despite mediation efforts, the unions remain firm in their plans. The three-hour warning strike—set for 11:00 to 14:00—is expected to disrupt both public and private sectors, including education, healthcare, construction, transport, ports, and more. Essential services will operate with skeleton staff. A demonstration will take place outside the Finance Ministry in Nicosia at noon, with similar actions expected across all districts.
Union leaders condemned the employers' stance as regressive and out of step with the original philosophy behind CoLA—namely, to protect workers’ purchasing power in the face of rising inflation. “CoLA is not a privilege,” said one union official, “it’s a social safeguard—and we will not allow it to be dismantled.”
