Cyprus’ construction unions rejected a framework agreement for a new sectoral collective agreement presented by the Labour Minister on Wednesday, according to the Cyprus News Agency (CNA).
The unions, including PEO, SEK, and DEOK, are demanding stricter measures to address illegal and undeclared work in the industry.
Their key demand is a legislative regulation of minimum wages for new entrants, which they say the Minister’s proposal lacks.
Michalis Papanikolaou, General Secretary of PEO’s construction workers’ union, stated the unions will hold a joint meeting next Tuesday to decide on further actions and propose more “dynamic measures” to their workers.
The unions accuse employers of underreporting wages to social security, with declared wages often falling below both the minimum wage for construction workers and the national minimum wage.
“There is a tremendous violation. So, we justifiably asked for support to stop this violation,” Papanikolaou said.
Regarding the agreement’s terms, PEO and SEK representatives stated dissatisfaction with the lack of reinstatement for wage cuts implemented since 2012. While the Minister expressed intent to include union demands in any future mediation proposals, Stelios Tsiapoutis of SEK highlighted the unions’ 22-month wait for a concrete response on the minimum wage issue.
While the Minister proposed increased monitoring efforts by the Ministry, both PEO and SEK argue this falls short of a legislative solution. They believe a legally mandated minimum wage for newcomers is vital to curb the issues of underpayment and lost state revenue.
Stelios Efstathiou of DEOK echoed these concerns, stating the framework lacks specifics and “something is missing” regarding minimum wage protection. He did not rule out potential measures in response to the proposal.
The employers’ side, represented by Stelios Gabriel of OSEOK, expressed a positive view of the framework, seeing it as a longer-term solution potentially exceeding union expectations. However, they noted the exclusion of their demands for modernisation within the agreement. They emphasised a commitment to curbing unfair competition through the renewed agreement.
Gabriel clarified that the unions’ push for legislative regulation is a separate matter from the collective agreement negotiations.
