Despite ongoing negotiations by the Ministry of Labour’s mediation service, the renewal of the collective agreement in the construction industry remains unresolved. Trade unions have now called for an impasse, which is expected to escalate the demands from both sides.
On December 4th, the SEK, PEO, and DEOK unions formally requested the declaration of an impasse in the last meeting held before the mediation service. However, the Ministry of Labour’s Department of Labour Relations has requested additional time. To address the issue, the Minister of Labour, Yiannis Panayiotou, plans to intervene and mediate the dispute.
Sources reveal that the Minister will initially hold an informal joint meeting with the three unions and the Cyprus Federation of Building Contractors (OSEOK). This meeting, scheduled to take place before the end of the year, will determine the Ministry of Labour’s next steps. It is likely that the Ministry will propose mediation to bridge the gap and renew the collective agreement in the sector, which covers approximately 40,000 workers and expired in May 2022.
One of the major obstacles in the negotiation process, as highlighted in Ergatiki Foni, the weekly newspaper published by SEK, is OSEOK’s refusal to accept the unions’ request for inclusion in the Construction Industry Act. The unions argue that incorporating minimum wages into the legislation will help address unfair competition among contractors and workers.
Conversely, OSEOK has long advocated for the inclusion of a provision in the new agreement that allows newly hired specialized workers to be employed at the national minimum wage.
Furthermore, the unions demand the restoration of the full amount deducted from personal salaries based on the special agreement of 2013 for all categories of workers. Additionally, they call for an increase in the bonus percentage for all workers, raising it to 11% from the current 8%, effectively restoring the previously deducted 3% based on the 2013 special agreement.
The intervention of the Minister of Labour signifies a potential turning point in the construction industry labor dispute. With both sides expected to assert their demands more forcefully, the upcoming meeting will play a crucial role in determining the course of action.
The renewal of the collective agreement is vital to ensure the rights of workers and establish fair practices within the construction industry. As negotiations progress, it remains to be seen whether mediation can bridge the gap and pave the way for a mutually agreeable resolution.
The construction industry, employing a significant workforce, plays a pivotal role in Cyprus’s economy. The outcome of these negotiations will have far-reaching implications, impacting not only workers’ rights but also the overall sector’s stability and growth.
Both the trade unions and the Cyprus Federation of Building Contractors have expressed their determination to push for their respective demands. As the dialogue continues, stakeholders across the industry will closely monitor the developments, anticipating a favorable resolution that safeguards the interests of all parties involved.
In conclusion, the intervention of the Labour Minister marks a significant step forward in the construction industry labor dispute. While negotiations have yet to reach a resolution, the upcoming joint meeting and subsequent mediation proposal hold the potential to bridge the gap and renew the collective agreement. The importance of reaching a fair and comprehensive agreement in this critical sector cannot be understated, as it will impact the livelihoods of thousands of workers and shape the future of the construction industry in Cyprus.
