Cyprus hoteliers are no longer in a position to accept a mediation proposal by Labour Minister Zeta Emilianidou to resolve a dispute over pay in the hotel industry following the demise of Thomas Cook.
Before the deal, initially approved by unions and hoteliers, the industry was heading for strike action which was averted with the last-ditch agreement in August.
However, Thomas Cook’s downfall left many hotels unable to live up to their end of the bargain, said Cyprus Hotels Association chairman Haris Loizides.
Hoteliers are to deliver their final decision after members cast their vote next Monday.
The indications are not encouraging, especially from members in the Famagusta area, which appears to be the worst affected by last month’s collapse of the British tour operator Thomas Cook.
Loizides told Stockwatch that many hotels are in a bad financial state due to the collapse of Thomas Cook and will not be able to satisfy 5.5% salary increases over four years and other benefits provided under the mediation proposal.
He said association will try to convince its members to accept the proposal by trying to achieve some tax relaxations and easing payments to the state such as contributions to state cohesion funds and fees to local authorities.
Loizides explained that while the government is approaching hoteliers demands with a positive view, a sticking point for hoteliers is the minimum wage for unskilled labour, which is part of the package.
Emilianidou has said that making alterations to the proposal is not possible as it was a result of long negotiations.
She said concessions can be made regarding the employment status of students temporary employed during summer months and the sharing of the 1% contribution to the welfare fund.
The salaries of seasonal workers in the hotel industry will not be covered by the minimum wage law.
Hotels are in negotiations with local authorities to facilitate an extension of tax payments on overnight stays, fees for garbage collection and sewerage, as well as taxes on property.
The unions have said that following Thomas Cook's bankruptcy they are willing to take into consideration problems faced by hotels.
