Newsroom
Cyprus is facing rising tensions over the government’s plan to extend the cost-of-living allowance, known as “ATA for all,” with unions warning a new general strike could be on the horizon.
According to Kathimerini's Dorita Yiannakou, the dispute has escalated since a general strike earlier this month, as both unions and employers try to make sense of the government’s announcement, which so far comes with few details. Employers even sought a legal opinion suggesting the plan might be unconstitutional, while unions say the lack of written proposals is making proper negotiations impossible.
Today, a crucial pan-union assembly is taking place, with 13 trade union organizations gathering to discuss their next steps. Unions are pressing for clear rules on how the ATA will be implemented and want measures that ensure at least 55,000 currently exempt employees benefit. They are also pushing for the expansion of collective agreements and incentives for businesses to adopt them.
Employers’ groups, meanwhile, are set to meet on October 2 to coordinate their response, emphasizing that “ATA for all” remains off the table for them. They also plan to discuss broader economic reforms, including taxes, pensions, and bureaucracy.
Labor Minister Yiannis Panayiotou said the government is not in conflict with either side, stressing that dialogue will continue but that authorities are prepared to act if no agreement is reached. He insisted the government is united in policy, dismissing reports of differing approaches between himself and Finance Minister Makis Keravnos.
As Cyprus waits to see whether negotiations will hold or a new strike will be called, the lack of a formal framework for “ATA for all” continues to fuel uncertainty and frustration on all sides.
