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26 May, 2024
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Labor Minister proposes compromise on CoLA issue

Minister Yiannis Panagiotou presents proposal for three-year renewal of interim agreement and increased rate of payment for CoLA

Labor Minister Yiannis Panagiotou presented a mediation proposal on the CoLA (Cost of Living Allowance) issue to trade unions and employers' organizations on Friday morning (28/04). In a statement following the meeting, the Minister stated that the Government had conducted extensive social dialogue and presented a compromise proposal in line with the economic possibilities and fiscal discipline while considering the needs of society to facilitate a compromise.

In particular, the compromise proposal provides for the following:

  • Renewal of the 2017 interim agreement for a period of three years.
  • Increase of the rate of payment of the CoLA to 2/3 (66.7%) of the consumer price index instead of half of the current rate and zero of the previous rate.
  • Immediate payment of increases to workers, starting June 1, in line with 2022 inflation.
  • Develop a structured social dialogue for a comprehensive agreement by 2025, with permanence.

The Minister emphasized that while a compromise cannot completely satisfy all parties, it is essential for the greater good and public interest. He urged the social partners to approach the proposal with seriousness and sobriety. The Minister expressed hope that the next meeting, scheduled for next week, would receive a positive response.

The social partners will discuss the proposal with their respective organizations, and a final decision will be made at the next meeting with the Minister of Labor on Friday at 10:00 am.

Cyprus  |  economy  |  labor

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