InsiderEconomyNew round of CoLA negotiations looms as deal remains elusive

New round of CoLA negotiations looms as deal remains elusive

The deadline for the government’s submitted compromising proposal on the cost of living allowance (CoLA) in Cyprus is on Friday with unions publicly declaring it is not acceptable.

As for the Cyprus Employers Federation (OEB), they said yes while the Cyprus Chamber of Commerce and Industry said they are not rejecting it.

Philenews reports that Labour Minister Yiannis Panayiotou who is meeting with all parties concerned later on Friday will have to launch a new round of negotiations so as to finally ensure labour peace.

Unions and employer organisations have been wrangling over the matter for months and the dispute had culminated in a nationwide protest in January.

This had brought to a halt a number of services including airports, public services and media outlets.

Insiders said the minister will try again to secure a positive answer from all sides. But if he fails, he intends to invite the social partners back to his office early next week to continue negotiations.

And that no minor changes to the proposal are excluded, if they are agreed by both sides and if public finances allow.

The proposal provides for an increase in the rate of the CoLA proposed from 50% to 66.7% of the increase in the 2022 Consumer Price Index.

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