The government yesterday prevented potential strike action by trade unions with a sudden move, sending a framework of proposals to resolve the Cost of Living Adjustment (CoLA/ATA) issue during a pan-union conference.
According to information, the government’s proposals do not differ significantly from what has been discussed until now, but they are presented in greater detail in an effort to form the basis for a final mediation proposal to the social partners.
In more detail, the second consecutive pan-union conference was held yesterday afternoon at PEO offices, which was convened urgently after the last meeting between unions and the Ministers of Labour and Finance last Friday.
It is recalled that at that particular meeting, counter-proposals from the employers’ side were presented, which were characterised by the unions as completely outside the framework.
The unions had indicated they would take measures at yesterday’s pan-union conference, having argued that after the latest developments, the process had reached a deadlock.
Yesterday’s sudden delivery of a solution framework from the Government to unions and employers, even in the midst of the unions’ meeting, was clearly intended to both prevent the unions from taking measures and to give new life to the dialogue, following the unions’ statements about the process collapsing.
Of course, the move by the two ministers might not have been completely unexpected, given that sources tell Phileleftheros that on Sunday there was a meeting between the two ministers and the President of the Republic, during which they reviewed the situation and determined the next steps.
Related to this, throughout the weekend, behind-the-scenes contacts had taken place between ministers and social partners to prevent the dialogue from breaking down.
The framework of proposals from the two ministers reached the unions while the pan-union conference was in progress.
As a result, the meeting was interrupted to examine the government proposals, without it being initially clear whether these constituted a mediation proposal or simply a framework for discussion.
After it was clarified that it was not a mediation proposal, the unions began studying these proposals.
At first reading, significant ambiguities were identified, as was stated, and thus a list of observations from the unions was prepared, with which they sought clarifications from the government side.
The employers’ organisations appear to have been engaged in a similar process, having also received the government proposals.
Pause due to foreign travel
Regarding the process, no developments are expected in the coming days, given that both the Labour Minister and several officials from employer and trade union organisations are travelling abroad for meetings of European organisations on labour issues.
This means the next episode is expected to unfold on Friday, when the government side will likely send clarifying answers to the social partners’ questions.
After receiving the clarifications, unions and employers will examine them in their competent bodies, and if it is determined that convergence is possible, the government will submit a mediation proposal.
However, as was characteristically told to us, “At this moment we are as close as we are far”.
This means that much will depend on the government’s answers. The government’s basic position remains the provision of CoLA to all workers, with emphasis on low-wage earners and the middle class.
Background context
The Cost of Living Adjustment (CoLA) has been a contentious issue in labour relations for years. The mechanism automatically adjusts salaries based on inflation rates to protect workers’ purchasing power.
Following the 2013 financial crisis, CoLA was partially suspended as part of austerity measures.
In recent years, with rising inflation significantly affecting households, trade unions have been pushing for the full restoration of the CoLA system.
Employers’ organisations have resisted, arguing that automatic wage increases regardless of productivity or company performance could harm competitiveness and job creation.
