THE PRESSING problem of the state pensions, which threatens to sink the economy, would be tackled after tomorrow’s parliamentary elections, said finance minister Charilaos Stavrakis on Wednesday. He said there would be intensive consultations with all social partners and the political parties so “that the best possible solutions could be found for the Cyprus economy”.
While Stavrakis is often guilty of excessive optimism, this time he has surpassed himself. How could anyone share his optimism after hearing him on Wednesday say the following: “I insist and pledge that we will reach a deal with PASYDY through consensus and through dialogue and the pension issue will be resolved.”
Either the minister knows something we do not or he has completely lost touch with reality. We hope it is the former, even though there has been no indication that the militant PASYDY leadership had decided to behave responsibly and put the interests of the economy above those of its members. Has the minister not heard the PASYDY boss mouthing off about his refusal to negotiate ‘workers’ conquests’, which were enshrined in the collective agreements?
Without giving up some of these ‘conquests’ – for instance the conquest not to contribute anything to the social insurance fund and the conquest of being paid an extortionate monthly pension – there can be no solution to the problem, likened by Stavrakis, to ‘a ticking time-bomb’. The fact that Stavrakis, like the president, is committed to finding a solution through consensus does not allow any room for optimism.
As far as industrial relations are concerned, the word ‘consensus’ has lost its meaning. In Cyprus, ‘consensus’ is achieved only when the unions have nine out of 10 demands satisfied and they make a small compromise on the tenth. The president’s declaration, some months ago, that no decision would be taken without PASYDY’s consent was licence to the union boss Glafcos Hadjipetrou to dictate the alleged ‘consensus’.
It is not as if the government is unaware of how Hadjipetrou operates. In the budget for 2011, the finance ministry included a €35 million cut in the public sector wage-bill, without first seeking PASYDY’s consent. The union subsequently announced that it would not accept this cut, which would also have been made in 2012. The amount is a tiny fraction of the annual wage-bill, but when over something so insignificant PASYDY flatly refused to co-operate what is the likelihood it would consent to any measure that would most probably reduce its member’s monthly income and pension?
Stavrakis might secure a deal through consensus, but he is dreaming if he thinks the deal would go far enough to stop the time-bomb from ticking.
