Newsroom
The government faces mounting uncertainty over its “COLA for all” pledge, as a legal opinion obtained by employer organizations suggests universal application of the Cost-of-Living Allowance (COLA) in the private sector would be unconstitutional. According to an article by Kathimerini's Dorita Yiannakou, the move has stalled social dialogue, with unions and employers both criticizing the government for hasty and poorly prepared announcements.
Labor Minister Yiannis Panayiotou now confronts three possible paths: present a legal opinion to justify the plan, pursue a compromise with social partners without universal legislative COLA, or provide economic studies to address employer concerns.
Employers, led by OEB President Giorgos Pantelidis, argue that imposing COLA legislatively violates free-market principles and call for its removal from official discussions. “In a rule-of-law state, neither the executive nor the legislature can ignore constitutional boundaries,” said OEB Director General Michalis Antoniou. A joint meeting of OEB and CCCI is scheduled for Oct. 2 to review the legal opinion.
Unions also demand clarification from the Attorney General to ensure the plan’s legality. SEK Secretary-General Andreas Matsas warned that public expectations could be undermined if the government fails to substantiate its proposal.
Minister Panayiotou emphasized his commitment to social dialogue and modernizing the COLA system, including universal coverage, fair allocation for low- and middle-income earners, activation conditions to avoid slowing growth, and safeguards against inflation. While legal opinions are not formally part of negotiations, he said seeking advice is a respected right and a sign of the state’s ongoing efforts to strengthen labor rights.
