Unions and employers to review CoLA moves following strike

Trade unions will hold a Cyprus-wide meeting on Wednesday to discuss the latest developments in the CoLA impasse which could include extending or intensifying measures.

Unions from the private and public sector staged a three-hour strike on September 11 calling for employers to return to the full payment of the Cost of Living Allowance.

General sectary of the Sek trade union Andreas Matsas said that although meeting were held last week by the labour minister with both them and employers they have not received a fresh invitation for further meeting.

“As things develop, the process becomes more difficult,” he said, adding that unions would attend if invited.

Employers too are set to meet to coordinate.

On October 2, the executive committees of the Employers and Industrialists Federation (Oev) and the Chamber of Commerce and Industry (Keve) will hold a joint session.

General director of Oev, Michalis Antoniou, told the Cyprus News Agency the meeting is intended for coordination and decision-making on CoLA and other issues such as tax and pension reform.

He underlined that employers do not accept the principle of “CoLA for all”.

Shortly before the strike Labour Minister Yiannis Panayiotou had proposed CoLA be paid to all workers but on a different scale according to income.

Antoniou said both Oev and Keve have been running economic models to test different options around competitiveness, inflation and household costs.

While employers are open to dialogue, he insisted their position on CoLA has not changed, describing it as harmful to competitiveness in open economies.

Despite the differences, Antoniou expressed hope for convergence. “We are reaching out to trade unions and the government,” he said.

On Friday, Finance Minister Makis Keravnos said it was “inconceivable” that workers and employers could not reach an agreement over the future of CoLA.

“It is inconceivable at this time when the only country in the European Union which has zeroed inflation is Cyprus, while previously inflation was negative, that we cannot reach an agreement. That is why I appeal to all sides. It is a positive juncture to reach an agreement,” he said.