With the current developments resulting from ongoing talks, it appears increasingly difficult to avoid the three-hour nationwide strike planned for Thursday by trade unions concerning the issue of the Cost of Living Adjustment (CoLA). The discussions between the parties, along with their firm stance on positions that do not foster a climate of compromise or industrial peace, are leading to a serious crisis with broader implications for the economy.
As expected, negotiations are set to intensify in the next 24 hours, yet the positions of the parties still seem far apart, making it unlikely that they will find common ground anytime soon to address the underlying issues of this labor dispute.
The trade unions argue that the pressure from their strike actions is unified, universally accepted, and fully targeted. They stress that employers and the government must heed the message from workers, who are seeking to secure the key parameters of collective bargaining agreements, which must be respected and effectively implemented. The employers' response, however, suggests exhausting all possibilities for dialogue to find a practical solution for CoLA, aiming to prevent the issue from permanently undermining labor relations.
In brief, while there is an apparent willingness from both sides to engage in dialogue, their differing perspectives appear to be at an impasse, with neither side willing to compromise on their core demands.
The unions maintain that they cannot accept proposals that would lead to the dismantling of CoLA or a gradual elimination of its main objective, which is to restore the purchasing power of wages. From the workers’ viewpoint, the employers' argument — that a final agreement on CoLA should be reached and that it needs to be modernized — is seen as a disguised attempt to phase out the institution altogether.
The developments surrounding CoLA are critical and are expected to lead to significant turbulence in labor relations. The parties remain entrenched in their positions, with unions insisting on the full and universal application of CoLA, as outlined in collective agreements, and employers pushing for the view that the system is unnecessary, arguing that the economy alone can determine wage levels and any possible adjustments based on pre-established criteria.
Overall, the gap between the two sides remains unbridgeable. It will require sharp insight and goodwill from all parties, including the Ministry of Labour in its mediation efforts, to prevent the collapse of tripartite social cooperation — a vital framework for maintaining industrial peace.
