CoLA compromise deal signed, labour peace restored (Update 2)

Trade unions signed the compromise proposal on the cost of living allowance (CoLA) on Friday afternoon, following a long-standing labour dispute over the issue.

The agreement was signed by all competent stakeholders during a meeting at the labour ministry on Friday evening.

The proposal entails that starting June, CoLA will be paid out at 66.7 per cent of the consumer price index, up from the current 50 per cent.

It also includes a provision that the matter will be resolved in its entirety by 2025.

This agreement puts an end to a long-lasting dispute over CoLA payment that led to nationwide strikes.

The last union to agree to the proposal was Peo, whose position was communicated about an hour before the scheduled meeting.

Speaking after an extraordinary meeting of Peo’s general council, the union’s general secretary Soteroula Charalambous said “we have been fighting an uphill battle for CoLa”.

Although the compromise proposal does not meet the union’s main objective for a 100 per cent payment, Charalambous said they agreed to it, considering the current data.

“The unacceptable attitude of the employers’ organisations…was not addressed decisively and effectively by the previous and present government,” which played a mediation role, Peo’s general secretary said.

However, she said the proposal is an improvement that puts the unions closer to the goal of full CoLA restoration.

“Through the efforts we have made since the presentation of the main parameters of the minister’s proposal, we have managed to reaffirm that the basis of the discussion that will take place will be the existing transitional agreement.

“Our message to workers, [is] that the struggle continues,” she noted.

Pasydy, Deok, Sek and Poaso unions had earlier said they could give their blessing to the CoLA proposal. Employer organisations Oev and Keve have also – somewhat reluctantly, agreed.