InsiderEconomyCompromise agreement on CoLA could be signed on Friday

Compromise agreement on CoLA could be signed on Friday

Unions and employers in Cyprus are one step closer to settling a dispute over the Cost of Living Allowance with insiders saying a new compromise agreement could be signed on Friday.

Friday is when Labour Minister Yiannis Panayiotou is meeting again with the Mediterranean island’s stakeholders, Philenews also reports.

Panayiotou submitted in writing his slightly different from the original one compromise proposal on April 28.

It basically proposes a permanent agreement to replace the interim one  in June 2025 rather than the end of the same year – an unnegotiable demand by the unions.

In substance, the proposal has not changed as it provides for an increased payment of the CoLA from June to 66.7% of the 2022 Consumers Inflation Index increase and a dialogue on permanent arrangements.

Until then, the CoLA will continue to be paid once a year but at two-thirds of the previous year’s inflation increase, instead of 50% as provided for in the 2017 transitional agreement.

However, the Minister’s written proposal renews the 2017 transitional agreement, further making it easier for the unions to show flexibility to accept it.

The union movement insisted on securing the language in it that will  regulate the CoLA on the basis of its philosophy.

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