A new Cost of Living Allowance (COLA) agreement between trade unions and employers’ organisations could be reached soon following Thursday’s intervention by new Labour Minister Yiannis Panagiotou.
It will certainly be a compromise from both sides but not a very painful one, Philenews also reported on Friday citing insiders.
The expiration of the previous 2018-2020 agreement has sparked a public row over the terms of the renewal. Trade unions seem ready to accept a gradual reinstatement of CoLA.
But they are objecting to the offer by employers who seem to have accepted the agreement of July 2017 and undertook to implement it, that is, payment of 50 per cent CoLA. The unions demand the CoLA’s full restoration.
Insiders said Panagiotou asked the trade union movement whether it would be possible to increase the percentage of the CoLA from this year, that is beyond the 50% provided for in the transitional agreement.
Specifically, a CoLA rise possibly to 60% or 65% of the increased inflation, retroactive to January 1, 2023, accompanied by a new transitional agreement to continue the dialogue.
But without a clause and timetables for the full restoration of the CoLA and its payment at 100% of the increase in inflation, albeit gradually.
President Nikos Christodoulides reportedly told Panagiotou that the issue should be resolved soon but within the framework of the state’s budgetary possibilities.
A general strike on January 26 over this issue had paralysed the Mediterranean island.
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