A strike in the key tourism industry during peak season was averted after hoteliers and unions came to an initial understanding on the renewal of collective agreements after the Labour Ministry intervened.
Hoteliers and unions have reportedly come to an initial agreement after record 34-hour negotiations navigated by Labour Minister Zeta Emilianidou.
The two sides were locked in talks from 10 am Monday morning till the early hours of Wednesday.
"I find the initial agreement to be beneficial to the parties. I want to thank everyone involved because we have really come to this conclusion with good will,” said Emilianidou.
She said the deal will protect workers’ rights, while maintaining the competitiveness of the tourism industry.
The deal includes salary increases, restitution of welfare contributions, minimum wage guarantees, integration of basic salaries and protection of the five-day working week.
The Ministry’s proposal is expected to included pay raises close to 4%, which was the initial demand of the unions.
Welcoming the development, director general of the Cyprus Employers and Industrialists Federation (OEB) Michalis Antoniou, said it was important to reach an agreement “through peaceful processes and a constructive dialogue”.
"The social partners in the industry have once again demonstrated that they handle the major crises responsibly," said Emilios Michael, of the Cyprus Chamber of Commerce and Industry (KEBE).
Both OEB and KEBE refrained from commenting further as they would like to evaluate the financial cost of the agreement on the hotel sector.
Before being signed the collective agreement must be approval by members of the unions involved and the hotel association.
The collective agreement has a duration of four years and considered to be an important development for maintaining harmony in a sensitive sector of the economy such.
"Key issues were the establishment of a minimum wage for certain categories of employees in the hotel industry to ensure that they have a decent salary. There was a demand by workers to have rights lost in 2013, which are to be partially restored,” said Emilianidou.
The Labour Minister said the minimum wage for low paid groups of hotel employees will be set with a decree.
Asked about the national minimum wage, she said two meetings have already been held with the International Labour Office, while the European Commission will assist us in the necessary studies before determining what it should be.
“We are expecting an outcome by the end of the year and once full-employment conditions are in place we believe that we will be able to have a national minimum wage”.
The minister said full-employment means a jobless rate below 5%, while today it stands at 6.5%.
