EMPLOYEES of semi-governmental organisations have threatened to go on strike “without warning” if either the government or legislators unilaterally pass additional austerity measures affecting their earnings.
Trade union OHO-SEK, representing thousands of workers in SGOs, rejects a government proposal to freeze payment of the cost of living allowance (CoLA) for the next two years and a 25 per cent cut in the 13th salaries paid to employees of the broader public sector.
Union boss Nikos Tambas said they will not consent to the government proposals “as is.”
“In the event the [Finance] Minister does not heed our voice and sends to parliament any bills on CoLA and for a 25 per cent cut on our 13th salary, we shall react without warning.
“The same goes if the Minister does not send bills to parliament, but we once again deal with a situation where parliament or the parties submit their own legislative proposals,” he added.
Tambas made it clear the union will make no more concessions as part of austerity measures, and urged the cash-strapped government to instead turn its attention elsewhere to increase revenues.
He reiterated the union’s longstanding proposal for taxing the rich and cracking down on tax evasion as a way of plugging the public deficit.
Among other things, the first austerity package raised the contributions of public-sector employees to the Social Insurance Fund.
According to Tambas, for SGO employees this represents a reduction in earnings from of 5.5 to 6.5 per cent.
Tambas called on the corresponding organization SIDIKEK – which is affiliated to left-wing union PEO – to join them.
Government spokesman declined comment on OHO-SEK’s warning, telling newsmen: “The process of discussions on the second package is ongoing; we do not wish to say anything further because we want consensus to prevail so that the second package can be sent to parliament soon.”
Trade union SIDIKEO-PEO kept its cards close to its chest yesterday, saying it would wait for the outcome of the negotiations before making any decisions.
Beginning of next week the Finance Minister is expected to wrap up talks with unions and employers’ organisations, and unveil the second raft of measures, which he has pledged to forward to parliament by Thursday or Friday.
The second austerity package includes some €360 million in spending cuts – €200 million of which will be saved from better targeting social transfers.
The administration’s main objective is to keep the public deficit below 2.0 per cent for 2012. Cyprus aims to have no deficit by 2013.
Meanwhile the union representing technical staff of the Electricity Authority of Cyprus yesterday backed OHO-SEK’s decision for possible industrial action.
And the students union POFEN released a statement stressing they would “not accept” any measure that would negatively impact them.
The government is considering introducing tighter means-testing of recipients of student grants. Some 35,000 students are currently beneficiaries.
POFEN said also they are opposed to the idea of slashing pay-grade scales for newcomers in the public sector.
