Trade unions representing staff at municipalities and local government authorities have thrown their support behind mayors’ planned protest on August 3, 2026, citing strong concern over the problems behind the decision.
In a joint statement, the unions called on the Government and the Union of Municipalities to begin substantive dialogue immediately to find long-term solutions that would ensure the financial sustainability and smooth operation of local authorities. At the same time, they oppose solutions that would shift municipalities’ financial problems onto citizens through increases in fees and taxation.
Funding formula inadequate
The unions said the Government’s obligation to financially support local government stems from the very philosophy of the reform implemented in July 2024. The main goals of the reform, they noted, were the merging of municipalities and securing their economic and administrative autonomy, so that policies could be developed to improve services to residents at the lowest possible cost. Municipalities, as local governance bodies closest to citizens, must be able to respond to the concerns and needs of local communities, they added.
Two years after the reform’s implementation, the unions say the legally mandated funding formula is inadequate, static and difficult to adjust. This, they argued, creates serious operational problems that affect the services provided and limit municipalities’ ability to respond to the additional responsibilities and obligations assigned to them.
Administrative autonomy sought
The unions said administrative autonomy for municipalities remains an unresolved demand, noting that autonomy must coexist with accountability. They stressed that local government is a key pillar for serving citizens and developing local communities, and that neither its administrative autonomy nor its financial sustainability should be put at risk.
According to the unions, the reform is still in a maturing process, with issues arising from the mergers still unresolved. They are calling for stability, effectiveness, transparency and accountability in local authorities, along with planned actions leading to the creation of permanent services tailored to residents’ needs. They said they support prudent financial management, stressing that municipalities must be protected from financial difficulties or impasses that could lead to temporary, piecemeal arrangements.
Respect for collective agreements
The unions are demanding respect for, and full implementation of, collective labour agreements, stressing that this is an obligation for both municipalities and the state. This obligation, they said, stems from Cyprus’s current labour framework and from the 2022 reform legislation.
At the same time, they oppose the use of outsourced services to cover permanent and ongoing needs of local authorities. Maintaining healthy labour relations and avoiding such practices, they noted, can help ensure labour peace and stability, which are necessary in public utility organisations.
Call for immediate dialogue
The unions are calling on the Government to reconsider its stance and, together with the Union of Municipalities, proceed immediately to dialogue to find sustainable, long-term solutions. The goal, according to the unions, should be the uninterrupted provision of quality services to citizens at the lowest possible cost.
The unions said they will monitor developments and seek dialogue with the Government and Parliament to find a solution that ensures the financial sustainability and smooth operation of municipalities.
