WIDESPREAD STRIKES in the private sector were averted in a deal brokered by Labour Minister Sotiroulla Charalambous last night between unions and the employers’ federation, bringing “relief” to the beleaguered economy.
The deal provides for a two-year wage freeze in businesses assessed by both unions and employers as being affected by the crisis, while the Cost of Living Allowance (CoLA) will continue to be paid as normal.
Charalambous announced the agreement last night after a near two-hour meeting with both sides at the ministry. The amicable conclusion puts industrial relations in the private sector back on firmer ground after the employers and industrialists’ federation’s (OEV) decision last week not to pay wage increases or CoLA for two years threatened to bring further turmoil to the struggling economy.
Before last night’s agreement, unions SEK and PEO threatened strikes in the hotel, drinks and milk industries. These have now been called off though according to Cyprus News Agency, porters and dock workers in Limassol and Larnaca will go ahead with a 24-hour strike today, seeking the payment of both pay increases and CoLA.
Speaking after the crisis meeting, the minister thanked both sides for the positive and constructive manner in which they worked with the ministry to find a solution.
She said the agreement confirmed “once again that in Cyprus, a successful industrial relations system exists that manages to provide solutions in these extremely difficult times”.
Charalambous had engaged in some serious shuttle diplomacy in the last few days, meeting the unions and employers separately in an effort to lower the stakes in what had become, in her words, an “explosive” situation.
The relief was palpable when both sides accepted the compromise proposal she had tabled before them.
According to the minister, the proposal provides that the two sides reaffirm their commitment to the implementation and operation of the collective agreements and the Code of Industrial Relations.
CoLA will continue to be paid normally while, due to the economic crisis, general wage increases will not have to be paid during the two-year period 2012-2013, though this only applies for businesses particularly affected by the economic crisis.
A joint monitoring committee will be set up by employers and unions. Its mandate will be to ensure correct implementation of the agreement, prevent abuse, assist businesses to avoid or limit potential layoffs and submit recommendations for further measures to be taken under the established procedures and in exceptional cases where serious economic problems are encountered. The ministry may also take part if necessary in the work of the committee.
“The proposal is very clear and I believe provides guidelines to both sides to deal with any issue that arises under the established procedures in the code of industrial relations,” Charalambous said.
OEV head Filios Zachariades thanked the minister for her “patience and hard work over the last few days which resulted in this agreement”.
Asked if companies with specific problems will seek a reduction in wages or freeze employers’ provident fund contributions, Zachariades said: “This is not a general rule we can talk about.”
He highlighted a clause in the agreement that said problems will be discussed by both sides and solutions found. The OEV head said the agreement will be ratified today by the federation’s board.
Asked earlier in the day what would happen if CoLA was not paid at the end of January, Zachariades said it would be possible for CoLA to be paid retroactively.
Head of the right-wing union SEK Nicos Moyseos described the agreement as “fair”, adding, “we will do everything in our power to ensure its correct implementation”.
Left-wing union PEO boss Pampis Kyritsis said the agreement came as a “relief” during difficult times.
The agreement guarantees very important workers’ rights and creates conditions to deal with difficulties in a “climate of dialogue and consensus”, he said.
Kyritsis said “it goes without saying” that strikes announced as a result of the OEV decision last week will not go ahead.
Asked who will determine which businesses are profit-making or not, he said employers and workers will use this “framework agreement” to decide together through dialogue.
