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12° Nicosia,
25 July, 2026
 
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Labour policy and the test of leadership

On social dialogue and institutional responsibility.

Dorita Yiannakou

Dorita Yiannakou

Credentials matter. They matter for everyone, without exception, but especially for those appointed to bring meaningful change to society and to the country’s economy. The new Minister of Labour, Marinos Mousiouttas, has assumed responsibility for a critical ministry and is now tasked with managing issues that cut across the full breadth of society. From students to pensioners, and particularly low-income pensioners who survive on a meager allowance, the stakes are high.

At the same time, the new Minister of Labour must confront entrenched guilds and trade unionists, as well as labor organizations and employers, all of whom are deeply involved in labor-related issues. Traditionally, unions tend to develop an adversarial relationship, marked by tension and friction, with whoever occupies the post of Minister of Labour. At times, employers follow the same path. This usually continues until the parties reach an understanding and agree, in essence, to disagree. That is precisely what happened in the case of COLA.

What unfolded was a six-month-long thriller of intense negotiations, confrontations, and repeated dead ends between the government and the social partners. Barbs were exchanged on both sides, public statements were made, and threats of mobilization loomed until, quite suddenly, an agreement was reached. An agreement that did not serve the interests of the majority of workers, let us be clear about that. Still, one thing remains certain. Even when the intentions of unions and employers are not entirely transparent, both sides seek and demand open, honest, and direct dialogue, without evasions or hidden agendas. This is exactly what they expect from the Minister of Labour.

And rightly so. The role of the Minister of Labour is not limited to regulating the labor market through legislation. It is a pivotal institutional role, central to safeguarding social cohesion, maintaining labor peace, and supporting sustainable development.

Unions and employers’ organizations represent the two primary poles of the labor market. The former give voice to workers’ concerns, rights, and expectations, while the latter reflect the needs and limits of the real economy. The Minister of Labour is therefore called upon to serve as a credible mediator between these two sides, maintaining balance, absorbing shocks, and preventing conflicts that could carry wider social and economic consequences.

The closeness of the Ministry of Labour to the social partners is not a political preference. It is an institutional necessity. Timely information, ongoing communication, and a genuine understanding of the labor market’s real challenges make it possible to prevent crises before they spiral out of control. At the same time, they reinforce trust in the institutional framework and allow for consensus-based solutions, even under intense pressure.

This role becomes even more demanding in periods of economic uncertainty, rapid change, and labor market transformation, such as the period ahead, which includes critical pension reform. Keeping open lines of communication with unions and employers ensures that policy decisions take into account both social considerations and business competitiveness.

When the Minister of Labour remains present, engaged, and accessible to dialogue, even the most complex impasses can be resolved. By contrast, distance or sporadic involvement often leads to escalating tensions and the loss of valuable time. This is a dynamic we witnessed firsthand in the COLA case.

In short, the Minister of Labour must remain consistently close to unions and employer organizations, not as a last-minute arbitrator, but as a steady guardian of social dialogue. Only through this continuous relationship of trust can social peace be preserved and economic growth meaningfully supported. With his experience in labor affairs and the strong relationships he maintains with both the social partners and the Minister of Finance, Makis Keravnos, we hope that Mr. Mousiouttas will handle labor issues, and the hot potatoes now in his hands, with prudence and sound judgment.

So yes, the results will speak for themselves.

Read this opinion in its original Greek here.

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