Government faces labor strikes as key sectors demand action

Cyprus is grappling with escalating labor unrest in its most crucial industries, as healthcare, construction, and tourism workers push for long-standing demands, according to a report by Dorita Yiannakou. The government is under immense pressure to find solutions, but mounting disputes and hardline positions from all sides are creating significant economic and social challenges.

Hotels: Demands of €240 Payments and Raises Keep Industry on Edge

The hotel sector narrowly avoided a full-blown strike after bitter negotiations over collective agreements. Workers are demanding a €240 lump sum for employees working before December 2023, proportional payments for new employees in 2024, annual raises of 2% from 2025, and the reinstatement of the 13th salary starting in August 2025.

Initially, progress was made, but the Pancyprian Association of Hotel Owners (PASYXE) threw a wrench in the works by rejecting the Ministry of Labor’s final proposal. The association cited unresolved concerns despite government clarifications. Key decisions are expected at upcoming meetings of the unions and employers, but tension remains high in this vital sector.

Construction: Strikes Costing Millions and Stalling Projects

The construction industry is at a standstill as workers in the ready-mixed concrete sector strike over overtime compensation. Employers have resisted union demands, leading to a deadlock. The Labor Ministry reports a wide gap between the positions of the two sides, with unions demanding strict adherence to the collective agreement and better overtime pay.

The strike, now days-long, has caused significant delays in infrastructure projects and left employers grappling with idle workers and mounting costs. Michael Antoniou, the general director of the Employers and Industrialists Federation (OEB), warned of “geometric” increases in pressure on the economy, as delayed construction impacts other sectors reliant on timely project completion.

Healthcare: €2 Million Sparks a Deadlock

The healthcare sector is in turmoil as government doctors stage a 48-hour strike, effectively paralyzing public hospitals. The dispute centers on a disagreement over financial incentives under the National Health System (GESY). Doctors are demanding an additional €2 million over the €2.5 million the government has offered, citing a study by the Audit Office that backs their claims.

The government proposed a compromise plan covering 2025–2027, but doctors refuse to discuss future terms until their 2023 demands are met. Health Minister Michalis Hadjipantela criticized the strike as unnecessary, accusing doctors of “blackmail” and prioritizing money over patient care.

Hospitals are operating on skeleton staff, handling only emergencies, leaving thousands of patients without treatments or surgeries. Public frustration is mounting as vulnerable groups bear the brunt of the healthcare disruption.

Government Under Fire for Reactive Approach

The government is facing heavy criticism for its handling of these disputes. Ministries have been accused of inefficiency and failing to take proactive measures to prevent strikes in these essential industries. Critics say the reactive approach has allowed tensions to boil over, jeopardizing industrial peace and economic stability.

While temporary solutions have been reached in some cases, unresolved issues continue to fuel unrest. The combined fallout from strikes in healthcare, construction, and tourism could deal a heavy blow to Cyprus’ economy if not addressed promptly.

The coming weeks are crucial as the government works to restore stability. The question remains: will the government find a lasting resolution, or will these disputes escalate further?