Cyprus employers, unions reach deal

The Employers and Industrialists Federation, OEV, and the two main trade unions, SEK and PEO, reached an agreement brokered by Labour Minister Sotiroula Charalambous late Tuesday and avoided nationwide strikes, following the employers’ decision to impose a freeze on wages and the Cost of Living Allowance (COLA) for two years.
According to the agreement, only profitable businesses will continue to pay the COLA surcharge and any pay increases that arise from the collective agreements.
However, it was agreed that all other companies would stick to the two-year wage and COLA freeze, but a committee would be set up to monitor the progress of companies and try to avoid redundancies where possible.
OEV’s calls for the reform of the COLA and other costs was also heard and the joint committee will start work on that as well.
The Chamber of Commerce, KEVE, had earlier differentiated its position from OEV, saying it opposed unilateral decisions, but that both sides needed to make compromises.