WORKERS’ unions SEK and PEO were yesterday up in arms over Finance Minister Charilaos Stavrakis’ declaration that it would be “ridiculous” to speak of extra pay rises in the public service for 2012.
The general secretary of workers’ union OHO-SEK, Nicos Tambas, said the minister’s statement was untimely and provocative. He added that the trade unions had committed to not seeking any pay rises for 2010 and 2011, as part of their contribution to efforts for economic recovery. “It seems this wasn’t appreciated, which is why they are now asking for further sacrifices,” said Tambas.
He stressed the need for everyone without exception to help deal with the economic crisis, adding that if circumstances allowed, public workers would seek pay rises in 2012.
Antonis Neophytou, the general secretary of SIDIKEK-PEO, said the minister’s statement was “inappropriate and untimely”. He said based on the code of industrial relations, workers were legally entitled to seek pay rises.
Neophytou said this would be decided when discussions start over the renewal of the workers’ collective agreements and the financial situation at the time is assessed.
He said the unions’ decision will take into account the fact that the wealthy didn’t contribute towards exiting the crisis, even though they had committed to do so in addition to the public servants’ “concessions”.
On Friday, the minister said it would be ridiculous to even consider any further pay rises for public servants in 2012, when they would already be receiving their cost of living allowance (CoLA) and the annual wage increases of around 4.0 per cent, which are included in their collective agreements.
Stavrakis’ comments were accompanied by his ministry’s official first-quarter figures, which showed that Cyprus’s deficit had increased almost sevenfold compared to the same period last year, rising from 0.3 per cent of gross domestic product (GDP) to 1.7 per cent. And this was despite the addition of a 5.0 per cent VAT on foodstuff and pharmaceuticals, as well as other tax hikes.
The opposition has now voiced its concern over whether a leaked internal finance ministry document last week projecting a 6.0 per cent deficit by the end of this year was closer to reality than the government has been making out.
Stavrakis said the document was one of many prepared to deal with “worst case scenarios” and that achieving the EU-imposed goal of or below a 4.5 per cent deficit was a “one-way street”.
Ruling AKEL member George Loucaides yesterday accused the opposition – “and all those who support its positions on the economy” – of being “greatly irresponsible” after accusing the government of cooking the books and spreading fear by forecasting the worst possible outcome for the economy.
DISY’s MEP Ioannis Kasoulides yesterday said the picture the government was painting over the first-quarter economic results was unrealistic. He said the deficit Stavrakis was referring to reached just €100 million when the true deficit was €313 million. Are we not justified in worrying?” he said.
Coalition DIKO spokesman Fotis Fotiou yesterday said what was worrying that the two main parties – DISY and AKEL – had put economy at the centre of the election, even though it was his party’s vice chairman, Nicolas Papadopoulos, who sparked the latest round.
