The stagnation in negotiations over the Cost-of-Living Allowance (COLA) and the decision by the Ready-Mix Concrete Employers’ Association to dissolve itself in order to avoid signing a collective agreement represent two sides of the same problem: the crisis of social dialogue in Cyprus.
A system that for decades functioned as a pillar of social peace and economic stability now appears to have reached its limits. The prolonged deadlock in reaching a solution on COLA reveals not only the differing approaches of workers and employers but also the state’s difficulty in acting as an effective mediator. The social partners no longer disagree merely on technical details; they now diverge on the very philosophy of the mechanism, on the meaning of redistribution and of sharing in the benefits of growth.
The case of the Ready-Mix Concrete Employers’ Association, which chose dissolution over negotiation, illustrates the erosion of collective responsibility. When organized representation is undermined, dialogue loses its institutional weight.
Renewing the process of social dialogue has become a necessity. A new framework is needed, one that adapts to the realities of the modern economy, the growing flexibility of employment forms, and the demand for transparency and participation. The government must redefine the role of the Department of Labour Relations, strengthening its institutional capacity as a mediator, while social partners must reinvest in a culture of dialogue rather than confrontation.
Social dialogue can be revitalised through a set of targeted institutional and practical measures: the appointment of an independent “social dialogue envoy” in Cyprus, following the EU model, to act as coordinator and mediator in disputes between social partners; greater transparency through open consultation procedures and regular publication of positions and proposals; and specialized training programmes to develop negotiation and mediation skills, reinforcing trust among the parties. The state, in turn, must assume its place as an equal partner, with enhanced mediating authority and modern institutional support.
Cyprus has a long tradition of compromise and social moderation, virtues that must not be lost. The next chapter demands institutional renewal, honesty in negotiations, and above all, a shared understanding that social peace is not a given but the result of constant effort and mutual respect.