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Cyprus’ Labor Minister Yiannis Panayiotou made a last-minute appeal to trade unions Wednesday, urging them to hold off on Thursday’s planned general strike as he unveiled the government’s updated framework for the automatic cost-of-living adjustment, known locally as the ATA.
According to Kathimerini's Dorita Yiannakou, in a joint meeting with employers and union representatives, Panayiotou outlined the government’s approach to modernizing the system, emphasizing a “universal expansion” of the ATA that would cover all employees while protecting low- and middle-wage earners. He stressed that the plan also includes safeguards to prevent inflation from spiraling and measures to avoid slowing economic growth.
“The government has created conditions for a fairer distribution of the growth dividend, improving earnings and overall well-being through better regulation of employment terms,” Panayiotou told the participants. Officials hope that dialogue under this new framework will lead to a final agreement before the end of the year.
Despite the minister’s efforts, union leaders remained firm. In a statement, they confirmed the strike will go ahead Thursday, calling on “all workers to massively and dynamically participate in the strike mobilizations.” Sources within the unions said while they welcome the government’s intention to expand ATA coverage, employers immediately rejected the proposal. The unions also opposed measures linking the adjustment to economic growth or inflation ceilings, arguing that the focus should remain on guaranteeing fair pay for all workers.
Employers, meanwhile, expressed partial agreement with the government’s stance but refused to back the full, universal return of the ATA. They indicated they would consider a graduated return that favors low-wage workers but only if overall costs remain controlled. They also rejected regulations tying the adjustment to growth while being open to discussions on inflation measures, including a review of the Consumer Price Index.
The stage is set for a high-stakes showdown on Thursday, with workers across Cyprus gearing up to make their voices heard and the government calling for calm and dialogue. The outcome could shape pay and employment conditions for thousands and set the tone for labor negotiations in the months ahead.
