Unions have firmly rejected the government’s proposal regarding the cost-of-living allowance (CoLA), arguing that it threatens the allowance’s integrity, according to Pasydy secretary-general Stratis Mattheou.
Cost-of-living allowance: Significant Concessions Made by Unions
In the ongoing negotiations surrounding CoLA, trade unions have reportedly made significant concessions. However, they remain resolute in their stance against the government’s recent proposals, which they claim would lead to the “degeneration” of the allowance. Mattheou expressed serious concerns about the government’s plan, emphasising that the proposal would only allow for CoLA to be granted when certain conditions are satisfied.
Concerns Over CoLA’s Future
Mattheou elaborated on the implications of the proposal, stating that it undermines the core principle of CoLA being an annual measure to counteract salary erosion caused by inflation. He noted, “The proposal leads to the degeneration of CoLA – essentially meaning that it would only be granted when certain conditions are met, whereas it should be given every year to offset salary erosion caused by inflation.”
Negotiations Under Labour Minister’s Auspices
The discussions have been ongoing under the auspices of Labour Minister Yiannis Panayiotou, with the participation of employers’ organisations Oev and Keve. Despite the unions’ willingness to accept a gradual restoration of CoLA to its full amount by 2028, along with an inflation ceiling, the latest government proposal has complicated matters.
Government’s Linking of CoLA to Economic Metrics
The government’s recent proposal links the allowance to both growth and inflation rates while also establishing a salary threshold above which the allowance would not be disbursed. This move has been perceived as a setback by union leaders, who feel that the employers’ organisations are trying to erode the benefits associated with CoLA.
Unions Express Disappointment
After a joint meeting on Friday, which included Finance Minister Makis Keravnos and Labour Minister Panayiotou, union leaders voiced their disappointment. Peo secretary-general Sotiroula Charalambous described the meeting as a serious setback, stating, “Unfortunately, with what we heard today, we have gone backwards. It is obvious that we are at an impasse.” She stressed the unions’ position that CoLA must be applicable to all workers.
Future Meetings and Actions
In light of the current deadlock, unions plan to convene again on Monday afternoon to discuss potential further actions. While they have not ruled out additional measures, the exact nature of these actions remains to be determined.
Labour Ministry’s Stance
The labour ministry responded to the situation by stating that “intensive efforts” to reach a workable agreement will continue. They noted that both unions and employers have demonstrated a positive approach throughout the negotiations, suggesting a willingness to find common ground.
Employers’ Perspective on Negotiations
Philokypros Rousounidis, secretary-general of the Cyprus Chamber of Commerce and Industry (Keve), highlighted the employers’ commitment to maintaining social dialogue. He acknowledged the dissatisfaction on both sides but expressed a desire to avoid escalating tensions. Rousounidis stated, “We are not very satisfied either, but we do not want to escalate the situation further and will await the next steps.”
The Path Ahead for CoLA
The ongoing discussions surrounding the cost-of-living allowance are crucial for many workers, particularly in the context of rising living costs and inflation. Both sides appear to be at a critical juncture, and the outcome of the negotiations will significantly impact the welfare of employees across various sectors. As unions prepare for their upcoming meeting, the focus will remain on securing a fair and sustainable solution for the cost-of-living allowance that safeguards workers’ rights.
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