EVERY time Labour Minister Sotiroulla Charalambous speaks in public she betrays her past as a union representative. She views everything from the narrow perspective of a trade union leader, defending the interests of his members, while completely ignoring the broader picture and the basic rules for securing a healthy economy.
Presenting the actions and policies of her ministry over the last two years, Mrs Charalambous underlined her lack of objectivity by taking a swipe at hoteliers for failing to comply with the laws and agreements. Predicting that this year would be better than 2009 for the tourist industry – without producing any evidence to support her claim – she urged hoteliers “to stand by their staff when units re-opened and bear in mind that they were being supported by resources of the citizens, through programmes promoting employment.”
The minister expressed concern regarding “worrying messages” that hoteliers were using students, on practical training, in positions that should have gone to trained hotel workers. Apart from not offering proper training to the students and good standards of service to guests, this practice “deprives the unemployed of jobs,” she said. This may have been a correct observation but someone less dogmatic would also have asked why this was the case. Could it be that hoteliers were using trainees in positions that required trained personnel because they could not afford to pay the wages stipulated by the agreements cited by the minister? Could the unions have priced their members out of the hotel labour market?
Such a thought would not even have entered the minister’s mind as she operates on the assumption that businesses have to pay wages imposed by unions, irrespective of whether they can afford to do so. She subscribes to the philosophy of Cypriot unions that want an employer to pay the agreed wages even if this drove a company out of business. If the “worrying messages” she received were correct and hoteliers were indeed using trainees, this was to keep their businesses afloat. In this way some jobs would be saved, instead of all of them being lost when the business goes under because of its unaffordable payroll.
The Cyprus tourist industry has lost its competitiveness as a consequence, to a large extent, of constantly rising labour costs. Every year, hotel occupancies are down, making survival more difficult. Funds for maintenance work and keeping the once high standards of service are no longer available, forcing hoteliers to cut corners to stay in business. Of course they would hire cheap, untrained labour if it helps their hotel survive, because they have no other choice.
An open-minded labour minister would have shown a little more understanding for the plight of hoteliers instead of publicly reprimanding them for trying to keep their businesses afloat. Mrs Charalambous needs to start living in the real world and stop viewing everything through union spectacles.
