THE ONGOING truckers’ strike is costing the economy £10 million a day, as the domino effect becomes apparent across all sectors on the island.
As the type A’ licence drivers’ strike enters its second week, OEV General Secretary Michalis Pilikos began counting the enormous cost to the Cypriot economy.
Following the baggage carriers’ strike which brought Larnaca airport to a standstill, the industrial action taken by the truck drivers has adversely affected almost every major sector of the Cypriot economy, he said, estimating the cost to the economy to be as high as £10 million a day.
“The first sector to be struck was the construction industry,” Pilikos stated. “Its reliance on raw materials meant that while all stocks were extinguished, the need for materials could not be met, and already people are being sent home unpaid.”
Employers in the industry have warned that layoffs are imminent, and salaries have already been halved due to the present paralysis.
Pilikos also went on to emphasise the worrying situation at the ports, especially Limassol. “Port warehouses have reached maximum capacity so no new imports are able to be stored. Exports will also be negatively affected, especially perishables such as grapes which are due to be exported in the next few days.”
However, Pilikos was keen to point out that contrary to reports, transit goods passing through Cyprus were not going to be affected. “Triangle goods will not be delayed in their transport to other countries. Such goods arrive at Cypriot ports, but remain inside the port and are transported abroad within the next few days.”
OEV and KEVE, Cyprus’ largest employers’ organisations, have expressed their fears that the damage caused to the economy could be irreversible, and that there is an urgent need for government officials to revise their positions on licence provision.
When quizzed over the impact the strikes would have on the tourist industry, the mainstay of the economy, Pilikos was keen to stress the psychological bearing the situation would have on prospective tourists. “Hotel stocks will be slightly affected, but it’s the poor impression this will have on the Cypriot tourist industry abroad that could prove damning for the country’s future,” Pilikos said.
Economist Costas Apostolides yesterday pointed the finger of blame at the government, stating that “the situation was gravely mishandled culminating in Monday’s clashes at several Cypriot cement works. Such demonstrations were to be expected, and the police force’s response proved that the government was ill-prepared for such a scenario.”
Apostolides also referred to the tendency of many Cypriot industries to keep stocks low, a result of which was the stunting of the construction industry due to the lack of raw materials.
He added that “small-scale, independent proprietors, especially cattle herders, are more likely to be affected by the strikes, due to their inability to provide alternative means to satisfy their immediate needs.”
