A standstill has been confirmed in ATA negotiations, with unions prepared to announce a labor strike.
Negotiations over the Cost-of-Living Allowance (CoLA) in Cyprus have hit a roadblock, with trade unions and employers holding diametrically opposed views on the issue. The impasse has led to the unions preparing for potential strike action, as no progress has been made in talks with employers and limited government intervention[1][2].
The unions, including SYXKA-PEO, OYXEKA-SEK, and SEK, have not accepted employer proposals and are awaiting immediate payment of agreed dues from the hotel sector's collective agreement[1]. Major hotel groups, representing about 30% of the market, face complaints from unions for failing to pay the agreed amounts, exacerbating tensions[1].
Andreas Matsas, General Secretary of the Cyprus Workers Confederation (SEK), has confirmed that there is no convergence on principle between workers and employers, describing the situation as a clear deadlock[2]. Matsas spoke to the Cyprus News Agency (CNA) and indicated that the unions are preparing for collective action[2].
The joint union conference, initially scheduled for July 24, has been postponed due to the wildfire emergency in the Limassol district. However, the unions are poised to announce strike action if no agreement is reached soon[2].
The Ministry of Labour and Social Insurance is conducting meetings separately with trade unions and employer organizations. Despite this, social dialogue cannot continue indefinitely without resolution[1]. The ministry has shown no intention of initiating further meetings on the ATA issue, reflecting the deadlock in negotiations.
Union leaders strongly defend CoLA as a necessary measure aligned with European practices and warn against attempts to weaken it[4]. The ATA issue remains the subject of the negotiations between the unions and the government.
In summary, the automatic Cost-of-Living Allowance negotiations remain stalled with union threats of strike action looming, primarily driven by disputes in Cyprus' hotel sector over payment and restoration of CoLA[1][2]. The unions are expected to convene shortly to decide their next moves, with strike action increasingly likely if no progress occurs.
- The unions in Cyprus, including SYXKA-PEO, OYXEKA-SEK, and SEK, are set to announce strike action if no agreement is reached concerning the Cost-of-Living Allowance (CoLA), as they await immediate payment of agreed dues from the hotel sector's collective agreement.
- Andreas Matsas, General Secretary of the Cyprus Workers Confederation (SEK), has confirmed that there is no convergence on principle between workers and employers, and the joint union conference has been postponed due to the wildfire emergency in the Limassol district.
- The Ministry of Labour and Social Insurance in Cyprus is conducting separate meetings with trade unions and employer organizations but has shown no intention of initiating further meetings on the ATA issue, reflecting the deadlock in negotiations.
- Union leaders are strongly defending the CoLA as a necessary measure aligned with European practices, and the unions are expected to convene shortly to decide their next moves, with strike action increasingly likely if no progress occurs in the Cyprus economy, particularly within the hotel industry.
