A new round of contacts on the cost of living adjustment (CoLA/ATA) begins today, following last Thursday’s general strike and the Labour Ministry’s submission of a discussion framework based on four main parameters, which will effectively move negotiations onto a new basis.
This represents potentially one of the most difficult cases of finding common ground on a labour issue, as employer and trade union positions remain diametrically opposed without substantial movement from their initial stances, resulting in months of discussions without meaningful progress.
Employers and unions maintain opposing positions on wage indexation extension
The new cycle of contacts by the Labour Minister begins today, Monday, with a meeting with employer organisations OEV and KEVE at 9:00am, whilst on Tuesday, he will meet trade unions at 9:30am.
Prospects for agreement appear dim, as sources indicate both sides do not intend to retreat from their basic positions.
However, given that margins are now narrowing, the new round of contacts takes on particular significance following the government’s framework submission, as it will reveal whether current practices can continue or whether the Labour Minister’s mediator approach needs changing.
Employer organisations have made clear that (a) they will not even discuss the possibility of granting ATA to all workers in public and private sectors, and (b) they consider legislative regulation of the issue unthinkable, arguing this would mean the end of industrial relations as known today and dialogue between social partners.
In a joint statement issued yesterday by OEV and KEVE regarding today’s meeting with the Labour Minister, they clarified their stance remains unchanged.
Universal ATA application is out of the question and will not be accepted, they noted, emphasising ATA cannot extend to the entire private sector, as this would create serious burdens for businesses and negatively affect economic competitiveness.
Labour minister proposes four-point framework for ATA modernisation
Regarding trade union organisations, sources indicate no intention to move from already known positions submitted to the minister.
They state they are “going to the meeting to hear the content of positions included in the framework submitted by the Labour Minister during the last meeting”.
The minister’s ATA modernisation proposal framework includes four basic positions: (a) Universal extension of ATA to cover all workers in public and private sectors. (b) Fairer distribution for restoring payment percentage, emphasising low-income earners and the middle class (graduated). (c) Mechanism for introducing safety measures to ensure ATA provision, relative to development rates per case, does not harm economic competitiveness. (d) Establishing criteria to prevent inflation feedback through ATA provision.
Labour Ministry sources indicate the government has submitted the framework it believes should guide ATA modernisation dialogue and finding a permanent solution to the issue, expecting social partners to show goodwill and flexibility to achieve common ground.
