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Tag: Labour Minister

  • Minimum wage — Minimum Wage Increase in Cyprus Faces Criticism from Employers and Unions

    Minimum wage — Minimum Wage Increase in Cyprus Faces Criticism from Employers and Unions

    The recent minimum wage increase in Cyprus has sparked significant criticism from both employers and trade unions. Labour Minister Marinos Mousiouttas emphasised the government’s aim to protect the purchasing power of workers while maintaining business viability. Speaking during an interview on RIK television, Mousiouttas noted that the Ministry’s role is to mediate, ensuring industrial peace and improving earnings without jeopardising the economy’s ability to absorb these changes.

    Employers Raise Concerns Over Economic Impact

    The Cyprus Federation of Employers and Industrialists (OEB) has voiced strong opposition to the minimum wage hike, which they believe exceeds the real economy’s capacity. The OEB estimates an approximately 8.8% increase, arguing that this rise is not justified by productivity levels. They warn that the total cost to employers could surpass €1,250 per employee, placing additional pressure on businesses, particularly those that are only marginally viable.

    OEB representatives have also expressed fears that passing these increased costs onto consumers could fuel inflationary pressures. The Federation’s concerns reflect a broader apprehension within the business community regarding the sustainability of such wage increases in the face of potential economic downturns.

    Trade Unions Demand More for Workers

    Conversely, trade unions argue that the minimum wage increase is still inadequate. The Cyprus Workers’ Confederation (SEK) has stated that the new minimum wage fails to meet basic subsistence needs, particularly for workers in sectors such as retail, cleaning, supermarkets, and security. Despite recorded economic growth, SEK highlights that wages in Cyprus remain disproportionately low compared to the GDP and productivity.

    Andreas Matsas, the General Secretary of SEK, has called for a review of the minimum wage decision before it is finalised. He pointed out that workers earning the minimum wage are largely unaffected by recent tax reforms, suggesting that the government should have taken more sensitive measures to support these individuals.

    A New Minimum Wage Structure

    The new minimum wage will come into effect on 1 January 2026, with a scheduled review in 2028. According to the decision made by the Council of Ministers, the minimum wage will be set at €979 for newly hired employees and will increase to €1,088 after six months of employment. This structure aims to provide a gradual increase for workers while allowing businesses time to adjust.

    Ongoing Dialogue and Negotiations Ahead

    The discussion surrounding the minimum wage is expected to continue beyond the festive period, with both employers and unions likely to engage in further dialogue. The government’s mediatory role will be crucial in balancing the needs of workers with the economic realities facing businesses. As the implementation date approaches, stakeholders will be keenly observing the impact of this increase on both the labour market and the economy at large.

    As tensions rise and differing opinions emerge regarding the minimum wage, it is clear that this issue will remain a focal point in Cyprus. The government’s commitment to safeguarding workers’ purchasing power, while also considering the viability of businesses, reflects a complex challenge that requires careful navigation.

  • George Penintaex Joins Parliament Following Mousiouttas’ New Role

    George Penintaex Joins Parliament Following Mousiouttas’ New Role

    george penintaex — George Penintaex is set to enter parliament as a member of Dipa, stepping in after Marinos Mousiouttas vacated his seat to take on the role of labour minister. This transition occurred on Friday, marking a significant change within the party.

    Penintaex will now join fellow Dipa members Marios Garoyian, Alekos Tryfonides, and Michalis Giakoumis in the House of Representatives. His addition comes at a time of considerable political movement.

    In a statement to the Cyprus News Agency following Mousiouttas’ appointment, Penintaex expressed his commitment to his constituents. He remarked, “I will remain faithful to the principles with which I ran for office.” His ambition, he stated, is to serve the people of the Republic of Cyprus to the best of his abilities.

    Penintaex, born in 1956, is known for his philanthropic efforts, particularly as the chairman of the “Ena Oneiro, Mia Efxi” foundation, which supports children battling cancer. His professional background is rooted in journalism, having studied at Middlesex University in the UK, where he specialised in journalism and public relations.

    His career in journalism includes significant roles such as director of the Cyprus News Agency and secretary-general of the alliance of Mediterranean news agencies. With the upcoming elections in May, Penintaex, like all 55 current members of parliament, will face re-election, making this a crucial time for his political ambitions.

  • Government Pursues Swift Resolution on Cost of Living Allowance Negotiations

    Government Pursues Swift Resolution on Cost of Living Allowance Negotiations

    cost of — As the discussions surrounding the Cost of Living Allowance (CoLA) heat up, Labour Minister Yiannis Panayiotou is advocating for a swift resolution. His mantra for late October, ‘intensify and expedite’, reflects the urgency of the mediation efforts between unions and employers.

    Sources from the Cyprus News Agency reveal that following recent communications between Panayiotou and the involved parties, a new round of separate talks is on the horizon. Finance Minister Keravnos is also expected to participate once more, adding weight to the negotiations.

    Cost of: Focus on Convergence

    The approach taken by the Labour Ministry aims to identify areas where quick agreements can be reached, thus paving the way for a more permanent CoLA mechanism. This strategy is crucial as it seeks to establish a framework that can adapt to the ongoing economic challenges faced by workers.

    Silence from Unions and Employers

    Both unions and employers are currently refraining from making public statements. This decision underscores the delicate nature of the negotiations, where any premature comment could jeopardise the progress made thus far. Stakeholders are acutely aware that the coming days could prove pivotal in determining the future of CoLA.

    Looking Ahead

    As the negotiations unfold, the pressure is mounting on both sides to come to a consensus. The Labour Minister’s optimism, combined with the strategic focus on convergence, sets the stage for what many hope will be a decisive moment in the discussions. With key government figures actively involved, the possibility of a favourable outcome remains on the table.