Cyprus faces a pivotal moment in negotiations over its cost-of-living adjustment (COLA/ATA) system, with a decisive meeting scheduled for 10 a.m. today between government officials, employers and labour unions.
The meeting, which brings together Labour Minister Panagiotou and Finance Minister Keravnos with representatives from both sides, aims to forge an agreement on extending COLA to all workers with a gradual increase to 100% implementation.
“We are as close as we are far,” sources close to the negotiations say.
Both unions and employers appear willing to find a solution but have established certain red lines, according to participants in previous discussions. For any proposal to gain approval from their members, neither side can be seen to have conceded more than the other.
The ministers are tasked with crafting a balanced proposal that would “equally disappoint” both parties to ensure its acceptance by the relevant bodies, according to sources familiar with the negotiations.
Yesterday’s meeting between the ministers and union representatives followed earlier talks with employers. The atmosphere was constructive enough for ministers to proceed with today’s joint meeting aimed at submitting a final proposal.
However, significant challenges remain. Employers emerged dissatisfied from their recent meeting with the ministers, as evidenced by the subsequent announcement from the Federation of Employers and Industrialists (OEV) that their executive bodies had unanimously rejected the framework presented to them.
OEV and the Cyprus Chamber of Commerce and Industry (KEVE) had scheduled a joint executive committee meeting for Tuesday to determine their next steps. This meeting may now be in doubt following yesterday’s development about today’s joint talks.
While unions have indicated a willingness to discuss a potential proposal, they emphasise that this must happen immediately, preferably today. Tuesday’s planned meeting between KEVE and OEV is “too far away,” according to union representatives.
If no agreement is reached today or Monday, unions may call an extraordinary pan-union meeting, which sources say would almost certainly result in industrial action.
