Unions eyeing seek steep rise in CoLA

UNIONS could demand that the Cost of Living Allowance (CoLA) rise by up to 15 per cent in July to take account of recent price hikes.

According to Phileleftheros, unions consider the consumer price indicator for the month of May, expected to be released by the Statistical Service in the next few weeks, as a determining factor for the re-adjustment of the CoLA.

The recent fuel price increases and VAT of 15 per cent imposed on certain previously-exempted consumer products after EU accession, as well as the lifting of duties, have raised the cost of living on the island considerably.

The Employers and Industrialists Organisation (OEV) and the Chamber of Commerce (KEVE) agree that CoLA will be paid to employees, highlighting that it is an employer’s contractual obligation to do so.

However, they expressed concern over the added cost that would be shouldered by local businesses, saying that a rise in CoLA would have a detrimental effect on their competitiveness during a difficult period.

OEV spokesman Michalis Pilikos said the new CoLA would be an added weight on the dismal financial condition of most businesses during a difficult time for the Cyprus economy, partly due to the island’s accession to the EU.

KEVE’s Panayiotis Loizides appealed to the unions to show moderation in their attempts to renew collective agreements since CoLA would increase labour costs.

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