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Tag: CoLA

  • Mixed Reactions to New Cost-of-Living Allowance Agreement in Cyprus

    Mixed Reactions to New Cost-of-Living Allowance Agreement in Cyprus

    cost-of-living allowance — The new cost-of-living allowance (CoLA) agreement, signed on Thursday following extensive negotiations between employers and workers, has elicited mixed reactions from various political factions in Cyprus.

    • “Our most serious concern,” Disy added, “relates to the inevitable further expansion of the state payroll, in connection with general increases and mass hiring.”
    • Their statement concluded with a call for “the universal, fair and socially balanced implementation of the CoLA,” framing it as a matter of social justice and dignity in the workplace.
    • The future implementation of the CoLA will likely continue to be a focal point in the political discourse, reflecting the broader challenges faced by workers and the economy alike.

    Cost-of-living allowance: Political Parties Weigh In

    Disy, the ruling party, expressed support for the agreement, viewing it as a crucial step towards maintaining labour peace. They endorsed the 4 per cent inflation ceiling established for the CoLA’s implementation, which aims to mitigate its adverse effects. However, Disy also highlighted the need for modernising the CoLA institution, a commitment the government had previously announced. They argue that modernisation is essential for ensuring the sustainability of public finances and enhancing economic competitiveness.

    According to Disy, “the weaknesses of the institution remain,” pointing out that the CoLA is uniformly paid regardless of salary level. This system, they argue, disproportionately favours high-wage earners. The party also raised concerns regarding the expansion of the CoLA to the national minimum wage, suggesting that it merely affirms earlier decisions made by their government.

    “Our most serious concern,” Disy added, “relates to the inevitable further expansion of the state payroll, in connection with general increases and mass hiring.”

    Akel’s Advocacy for Labour Rights

    Akel, the main opposition party, praised the CoLA agreement as a significant achievement in advancing labour rights. They underscored that the agreement does not signify the end of their efforts. “The trade union movement fought a months-long battle to protect and secure the CoLA,” Akel stated, emphasising that this success demonstrates the power of collective action in expanding workers’ rights.

    The party has committed to continuing their advocacy alongside the trade union movement to ensure the CoLA encompasses all workers, asserting that “workers can live with dignity.” Akel’s spokesperson remarked, “The agreement on the CoLA signed yesterday is a milestone, but it is not the end of the road.”

    Ecological Movement’s Call for Universal Coverage

    The Ecological Movement echoed Akel’s sentiments, vowing to advocate for a policy that addresses societal needs comprehensively. They acknowledged positive developments, such as the planned full restoration of the CoLA to 100 per cent within 18 months in areas where it is currently applicable. Nonetheless, they deemed this progress insufficient.

    The movement articulated their stance clearly: “The CoLA must be awarded universally to all employees, and in a staggered manner, so that the support is proportional to actual needs and inversely proportional to the level of the salary.” They highlighted ongoing affordability challenges faced by citizens, stressing that measures affecting purchasing power should prioritise effective support for the most vulnerable rather than relying on partial solutions.

    Their statement concluded with a call for “the universal, fair and socially balanced implementation of the CoLA,” framing it as a matter of social justice and dignity in the workplace.

    Expansion of CoLA Beneficiaries

    The newly established permanent agreement expands the CoLA to benefit over 55,000 additional recipients. The allowance will see a gradual increase, moving from the current 66.7% to 80% of the cost-of-living rise starting January 1, 2026. This will further increase to 90 per cent on July 1, 2026, and finally reach 100 per cent by January 1, 2027.

    Annual adjustments will be made based on Cyprus’ real GDP growth, with the CoLA increase capped at a maximum of 4 per cent. In the event of an economic downturn, the labour advisory board will convene to review and recommend necessary measures.

    Looking Ahead

    As the CoLA agreement rolls out, the differing reactions from political parties illustrate the ongoing debates regarding labour rights and economic stability in Cyprus. While some parties celebrate the agreement as a significant achievement, others caution against potential pitfalls, urging for a more comprehensive approach to labour rights and economic sustainability.

    The future implementation of the CoLA will likely continue to be a focal point in the political discourse, reflecting the broader challenges faced by workers and the economy alike.

  • Trade unions — Cyprus Trade Unions Halt Meeting Over Government Negotiation Framework

    Trade unions — Cyprus Trade Unions Halt Meeting Over Government Negotiation Framework

    Cyprus’ trade unions suspended their joint meeting on Monday afternoon after receiving a draft negotiation framework from the government, citing “many ambiguities” in the document.

    • Cyprus’ trade unions suspended their joint meeting on Monday afternoon after receiving a draft negotiation framework from the government, citing “many ambiguities” in the document.

    The decision to pause discussions occurred during a pan-union conference that began at 3.30pm at the Peo headquarters in Nicosia. Delegates from major unions, including Sek, Peo, Deok, Pasydy, Oelmek, and Pasyki, were present as the four leading organisations briefed others on recent developments.

    Peo general secretary Sotiroula Charalambous voiced concerns about the text, which she described as containing “many questions and ambiguities.” She emphasised the need for clarification before further discussions could continue, stating, “It would be premature and careless to make any comments before obtaining the necessary explanations.”

    Charalambous reiterated the unity of the union movement around two main objectives: restoring the cost of living allowance (CoLA) to its full value and extending this system to all workers. “We are ready for an agreement,” she added, “but we are also ready to continue with any measures necessary to achieve these objectives.”

    Echoing her sentiments, Sek general secretary Andreas Matsas highlighted the importance of understanding the nature of the government’s text. He stated, “It must be clarified whether this is a mediation proposal or simply a draft for further work.” Matsas underscored the need for clear answers from the relevant ministers before any substantial response could be made.

    When questioned about a potential meeting with ministers, Matsas indicated it was possible, while Charalambous noted that any future steps would rely heavily on the clarifications received. Pasydy general secretary Stratis Mattheou remarked, “The process must be respected before any meeting can be decided.”

    Matsas pointed out that the procedural handling of the document was secondary, with the primary goal being to “obtain answers to the many questions that arise” and to grasp the “form and purpose” of the text for a proper evaluation.

    On whether the document could facilitate a resolution, Matsas stated, “In a state of stagnation, any step forward creates prospects.” He emphasised the need to assess the significance of those prospects before deciding how to proceed. Charalambous confirmed that a full evaluation would be made according to the principles established at the start of negotiations. However, she cautioned that if no agreement is reached, “there is no alternative but to escalate industrial action.”

    Deok president Stelios Christodoulou added that while advancements have been made, the situation remains unpredictable. “As close as we may seem to a solution, we could be just as far,” he commented.

    Matsas concluded that the resolution’s timing hinges on the government’s responses to the unions’ inquiries. Meanwhile, the executive committee of the employers and industrialists federation (Oev) also convened on Monday for an extended session, during which the government provided a “confidential note” entitled Negotiation Framework for the Cost of Living Allowance. Oev director general Michalis Antoniou noted that “important sections of the document are unclear and contradictory, with references that complicate efforts to reach common ground.” He assured that a more detailed public statement from Oev would follow in the coming days.

    The joint discussions among the unions revolve around renewing the framework governing the CoLA, a significant issue that has been under negotiation since the last meeting with the labour and finance ministers on October 16.

  • Unions Disapprove Government’s Cost-of-Living Allowance Proposal

    Unions Disapprove Government’s Cost-of-Living Allowance Proposal

    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.