THE ELECTIONS may be over but now the winning candidate will have to deal with the consequences of a campaign dominated by populist irresponsibility. On Tuesday, President Anastasiades met Andreas Matsas, general secretary of the trade unions federation Sek, and, according to an official announcement, discussed the framework within which, the conditions that would allow the implementation of his election promises, would be created.
Payback time had arrived, just 48 hours after the election. Sek would not have publicly declared its support for Anastasiades without securing a host of pledges from him in exchange. The union boss went to the presidential palace to make sure Anastasiades would not forget his promises. Matsas said that the “structures of social dialogue, in the next five years, would work, to a larger extent, to the benefit of the workers and everything they were entitled to”. Sek would work to put right the injustices perpetrated against the workers, Matsas said.
The dialogue about the setting of the minimum wage would begin soon, said Matsas. This idea was brought to the campaign by Akel’s candidate, while Anastasiades decided it was a vote winner and adopted a slightly amended version. He announced there would be a different minimum wage for every sector, dependent on the sector’s robustness, rather than a universal one, to make this command economy measure seem a bit less irrational.
The government and the unions will now determine wages instead of the forces of demand and supply, reinforcing the view that the overwhelming majority of our politicians, including Anastasiades, have an Akel mind-set. The irony is that people voted for Anastasiades, primarily because they did not trust Akel’s candidate to manage the economy, and he will introduce a measure, setting wages by law, that only the communist party Central Committee would have thought of.
What will he achieve with this measure apart from ingratiating himself to the unions? First, the government’s efforts to reduce unemployment will be dealt a blow, because businesses will be reluctant to hire new staff when their wage bill has increased by law. Second, the measure would discourage the opening of new small businesses that will be wary of having to pay the government-set minimum wage. Third, it would encourage some employers to hire workers on a part-time basis. Fourth, there may be a surge of undeclared work, which would mean workers would have few, if any rights. Fifth, businesses that are in trouble and struggling might close down if their wage bill increases.
Another question arises: who will determine the minimum wage in each sector of the economy? The labour ministry civil servants that invariably side with the unions in every industrial dispute and have no interest about the difficulties facing businesses? What will happen will be similar to the practices followed for collective agreements – the minimum wage (entry level) will be acceptable to the bigger, more robust companies of the sector, while putting the squeeze on smaller entities in a less healthy position.
The absurd thing is that all the parties, including the president’s, Disy, pay lip service to supporting small to medium enterprises (SME), which, they argue, are the backbone of the economy. Many of these businesses are struggling to meet their loan repayments and would have the added pressure of higher labour costs to deal with, which would push them deeper into trouble and reduce their prospects of survival.
What is worrying is that neither the Chamber of Commerce (Keve) nor the Federation of Employers and Industrialists (Oev) have taken a public stand about the president’s misguided plan. It would not be a surprise if they have decided to take part in the consultations for determining the minimum wages on the pretext that they would ensure these were low. This is not really the issue and these organisations that are supposedly the champions of the market economy should oppose state regulation of wages on principle. In a market economy, wages are determined by demand and supply, not by the government. A dynamic economy cannot thrive on labour market rigidities and distortions imposed by the state.
These rigidities, which were removed by the recession, are being brought back gradually, with the support of a populist president. At the beginning of the year a watered-down version of economically indefensible Cost of Living Allowance was re-introduced, but we are sure in a year or two the government will agree to restore it to its old destructive form. The minimum wage might also be set at a relatively low level, but how long will it take for the union to demand that it is increased? The Sek boss made clear what the union objectives were and Anastasiades, acting like an Akel president, is helping achieve them, regardless of the harm they will cause the economy.
41 Comments
almostbroke
February 12, 2018 at 13:03The ‘piper has already been paid , in spades , by the taxpayer ! Nik and the other charlatans dident becomes millionaires spending their own money ‘buying ‘amongst other things the Presidents chair ! !
Copernicus
February 12, 2018 at 09:06If 280,000 of fellow countrymen are on the poverty line and the CM thinks that the employers cannot afford to pay a decent minimum wage then we will get what they get in the EU with more populism and more inequality. The CM should be campaigning for a more equitable society not the crony capitalism we have witnessed and which has led to corruption and a few privileged. If the CM wants to be the spokes newspaper of the rich and employers it is doing a good job! The world is fed up of the old unions versus employers and wants a fairer share of the pie. Yes, if there are sectors which are doing well they should offer better wages. No one should set this by law but if employers are making profits giving their staff a better wage is a blessing!
Barry White
February 12, 2018 at 07:23Perhaps an edit of the headline is in order: “Our View: Election over, time for the Taxpayers to pay the piper.”
Prez Nik can’t pay for his promises as he is a very poor man according to his statement of his wealth.
Neroli
February 12, 2018 at 08:30He’s doing the same as when he was elected the first time, start pandering to the unions maybe he should join the Dikhead party
cyprus observer
February 11, 2018 at 16:20And now we know why the current Finance Minister does not want a second term. It is inevitable what is going to happen………
Neroli
February 12, 2018 at 08:28I think you’re right about Harris!
Kyrenia
February 11, 2018 at 15:17In the UK, the minimum wage that’s been in since the late 90’s has in my opinion, suppressed wages in the long run. To the extent that most families rely on tax credits to get by. It just becomes an extension of the control that the state has over it’s citizens. As Max Keiser puts it, we are all zombies living in zombie economies.
oratis
February 11, 2018 at 19:41not having a minimum wage over here has suppressed wages over here even more then.
how can you complain? the minimum wage in the U.K. is nearly double what the average wage is over here and the items in the shops here aren’t any cheaper, in fact visiting relatives from England tell me that some items are more expensive.
one of my nieces until recently worked in a pizza bar in Strovolos and she was only getting over just two and a half Euros an hour. and I know of a lot of other examples.
you don’t appreciate how good you’ve got it over there mate.
Kyrenia
February 11, 2018 at 20:48I remind you of the phenomon that is the food bank where people are forced to go to feed their families. Not everyone lives in the London buble.
GrouseMaster
February 11, 2018 at 13:21Ok so looks like hotel workers would get the highest wages under this scheme as this sector is by far the most robust and the biggest on the island.
Barry White
February 11, 2018 at 12:25Looking forward to the first minimum wage order to cover the House Ladies as well as their social charges and taxes.
Oh, what am I saying?
mongasz
February 11, 2018 at 11:08the disparity that exists between employment in the bloated public sector and the private sector is the cause of all ills.
The privileged parasites in the public sector (civil service and SOEs) enjoy enormous benefits, wages with close to zero productivity and no accountability while the opposite happens in the private sector.
In normal economies the absence of job security for life means that wages in the private sector are higher but no this is not what happens in CY since the sick system of CY politics uses the public sector for nepotism aka bought votes and corruption at the expense of the taxpayer while the private sector is dominated by oligopolists and tax dodgers who abuse their power.
This unsustainable model is doomed to failure and I am afraid the next bankruptcy of this distorted economic model is just a matter of time
Evergreen
February 11, 2018 at 11:46The main tragedy in public sector is an absence of accountability.
There is no Government Manual /Code about code of conduct linked with actions to be taken in case of breach of ethical and disciplinary matters . Further, there is not any coherent system of annual/periodical reports for r each officer/official about his/her performance in line with his job-description.
There is no laid down criteria about timely and rapid promotions here on the basis of some outstanding performance and the parameters for “outstanding perfornance” are not laid down in any government manual to be observed .
If some officer saves government revenue through his efforts, he is not given any credit, If any public servant does not attend his office phone to public-he is not even raprimanded. Such lapses create indifference among public servants about discharging their duties responsibly. They are least bothered as governance has given them free reigns.
Then there is no system to deal with disciplinary cases. One officer who had leaked out a classified info to serbians was just transferred. No one knows what charge- sheet was issued to him and who was/is his investigating officer? It s an unfortunate structure . It needs a system based upon accountability . But who cares?
oratis
February 11, 2018 at 19:52true
Γιώργος Τσούκαλος
February 12, 2018 at 09:39“There is no Government Manual /Code about code of conduct linked with actions to be taken in case of breach of ethical and disciplinary matters . Further, there is not any coherent system of annual/periodical reports for r each officer/official about his/her performance in line with his job-description”
That is entirely untrue. The relevant law stipulates that a civil servant can be sanctioned on disciplinary ground. This can be anything from reprimand either oral or written, to salary penalties, forced retirement and even to be fired.
The law is clear. The problem is that the ones who wield responsibility usually don’t have the cojones to do what is the right thing, even if the law gives them leeway. The biggest lie is that civil servants are untouchable. That is entirely untrue. It is the culture of irresponsibility which is at fault, which needs to be changed. The legal framework is there. I mean look at Erotocritou case, he was the Deputy Attorney General and now he is in prison.
The relevant passage is quoted below:
79.—(1) Οι πιο κάτω πειθαρχικές ποινές μπορούν να επιβληθούν
δυνάμει των διατάξεων του Νόμου αυτού:
(α) Επίπληξη·
(β) αυστηρή επίπληξη·
(γ) πειθαρχική μετάθεση·
(δ) διακοπή ετήσιας προσαύξησης·
(ε) αναβολή ετήσιας προσαύξησης·
(σ τ ) χρηματική ποινή που δεν υπερβαίνει τις απολαβές τριών μηνών
(ζ) υποβιβασμός στη μισθοδοτική κλίμακα·
(η) υποβιβασμός σε κατώτερη θέση·
(θ) αναγκαστική αφυπηρέτηση· και
(ι) απόλυση.
31 Ν.1/90
(2) Η επίπληξη γίνεται προφορικά και σημειώνεται στον Προσωπικό
Φάκελο του υπαλλήλου.
(3) Αυστηρή επίπληξη γίνεται γραπτώς και αντίγραφο της σχετικής
αηόψαοτς επιδίδεται στον υπάλληλο και καταχωρίζεται στον Προσωπικό
Φάκελο του υπαλλήλου.
(4) Διακοπή προσαύξησης σημαίνει τη για ορισμένο χρονικό
διάστημα μη πληρωμή προσαύξησης που διαφορετικά θα καταβαλλόταν
χωρίς αλλαγή της ημερομηνίας προσαύξησης.
(5) Αναβολή προσαύξησης σημαίνει αναβολή της ημερομηνίας κατά
την οποία η επόμενη προσαύξηση είναι πληρωτέα, με αντίστοιχες
αναβολές σ* επόμενα έτη.
(6) Σε περίπτωση αναγκαστικής αφυπηρέτησης από συντάξιμη θέση
εφαρμόζονται οι διατάξεις του εκάστοτε περί Συντάξεων Νόμου που
αφορούν ωφελήματα αφυπηρέτησης για τον τερματισμό υπηρεσίας προς
το δημόσιο συμφέρον.
(7) Η απόλυση συνεπάγεται απώλεια όλων των ωφελημάτων
αφυπηρέτησης:
Νοείται ότι στη σύζυγο και τα εξαρτώμενα τέκνα, αν υπάρχουν,
υπαλλήλου που απολύθηκε, καταβάλλεται σύνταξη, σαν αυτός να είχε
πεθάνει κατά την ημερομηνία της απόλυσης του, που θα υπολογίζεται
πάνω στη βάση των πραγματικών ετών υπηρεσίας του.
(8) Ότα ν επιβάλλεται σε υπάλληλο η πειθαρχική ποινή της απόλυσης
ή της αναγκαστικής αφυπηρέτησης ή του υποβιβασμού σε κατώτερη
θέση το γεγονός αυτό δημοσιεύεται στην επίσημη εφημερίδα της
Δημοκρατίας.
80.—(1) Η ποινή της επίπληξης μετά τρία έτη από την επιβολή της,
της αυστηρής επίπληξης μετά πέντε έτη και οι λοιπές ποινές, εκτός από
τις ποινές της αναγκαστικής αφυπηρέτησης και της απόλυσης, μετά
δέκα έτη από την επιβολή τους διαγράφονται.
(2) Οι ποινές πού διαγράφονται αποσύρονται από τον Προσωπικό
Φάκελο του υπαλλήλου και δεν επιτρέπεται εφεξής να αποτελέσουν
στοιχεία κρίσης του.
81.—(Ι) Η Επιτροπή δεν προβαίνει στη λήψη πειθαρχικών μέτρων
εναντίον οποιουδήποτε δημόσιου υπαλλήλου, παρά μόνο ύστερα από
γραπτή πρόταση της αρμόδιας αρχής.
(2) Αν καταγγελθεί στην αρμόδια αρχή ή υποπέσει στην αντίληψη
της ότι δημόσιος υπάλληλος δυνατόν να έχει διαπράξει πειθαρχικό
παράπτωμα, η αρμόδια αρχή οφείλει να μεριμνήσει αμέσως όπως:
(α) Αν το παράπτωμα είναι από εκείνα που αναγράφονται στο
Μέρος Ι του Πρώτου Πίνακα, διεξαχθεί ενδοτμηματική έρευνα
κατά τρόπο που θα ορίσει η ίδια και ενεργεί όπως προνοείται
στο άρθρο 82:
Νοείται ότι αν η αρμόδια αρχή πιστεύει ότι, λόγω της
σοβαρότητας του παραπτώματος ή λόγω των περιστάσεων κάτω
από τις οποίες διαπράχθηκε, θα έπρεπε τούτο να συνεπάγεται
σοβαρότερη ποινή, μπορεί να παραπέμψει το ζήτημα στην
Επιτροπή, σε τέτοια όμως περίπτωση ενεργεί δυνάμει της
παραγράφου (β)·
Δ
Evergreen
February 12, 2018 at 11:31The “LAW” functions and “operates through Codes/Manuals for laying out clear procedures in line with the “LAW”approved duly by the Parliament.
The “LAW”provides guidelines and process of carrying out the provisions are contained in Establishment Codes/Governance Manuals(each civilized country has a any of these nanes often) Now tell me
1. what is the “established process/laid down process of handling the disciplinary cases?
2. What is exactly the definition of ” misconduct”under your system?
3. What are the laid down -yes,I need to read “Laid Down” criteria and process to identify the “misconduct”” by a public servant ?
4. and who is primarilly responsible for keeping a record of the infividual public servant about his “misconduct””,breach of government instructions”?
5. And who is responsible /are responsible in writing to have yearly/half yearly appraissal of each and every public servant?
6.And who determines that this individual officer is above board and during the performance reporting period has been good with the public?
7. Who lays down the job descriotions in each department and who examines the compliance?
8. Who appoints the inquiry ifficers?
9. Who writes the annual report of officers in a /any/every deoartment?
10. What is the promition process for outstanding officers snd who writes this report?
11 what is the laid down process of issuing show-cause notices to officers for misconduct and who is “authorized ifficrr
at departmental levels and at ministry level ?
Find it and revert .
Your one page copy and paste is a sketch so deal with my questions in light of some manual of instructions if you have any. Otherwise its a mess as I pointed out already.
Γιώργος Τσούκαλος
February 12, 2018 at 12:22I don’t understand why you get so defensive.
Just google the relevant law Ο περί Δημόσιας Υπηρεσίας Νόμος του 1990 (Ν. 1/1990), and there is a section on discipline action, which explains everything. Its implementation is the problem, not the lack of a legal framework.
Evergreen
February 12, 2018 at 17:26This is exactly what I have pointed out. You do not have a “CODE” and it has caused an institutional absence of accountability.
Not defensive. Just realistic.
Γιώργος Τσούκαλος
February 13, 2018 at 10:13There is also a code of good conduct. Everything is online. If you look for it, you can find it. The lack of accountability is not due to lack of legal framework or code of conduct or whatever gimmick you have in mind. It is down to a culture of avoiding to take responsibility. And this thing is harder to fix than a simple writing or rewriting of the rules.
Evergreen
February 13, 2018 at 13:08No. Absence of accountabilityin public sector is because of a properly laid down Establishment Code of ethics and discipline. Legal framework needed a structure and a process .it s absent here. The only country without it on earth.
Γιώργος Τσούκαλος
February 13, 2018 at 13:29Cool story bro. If you say so, even when faced with facts, then fine. Also your comment about the only country without it on earth is blatantly wrong, but whatever. I cannot remove from your brain the idea that you are dealing with indigenous here, so be it.
cyprus observer
February 11, 2018 at 16:18Very eloquently put. Spot on.
Frustrated
February 11, 2018 at 09:49Gypsy Eyes on this thread has quite rightly stated that “paying workers a decent wage…….is an advantage and it is a moral prerequisite.”
Let me expand. By treating employees like slaves, a ‘practice’ which is part and parcel of employment ‘culture’ in Cyprus and especially in the hotel and catering industry, this leads not only to personal distress of those involved but has major disadvantages to the organisations which employ such heinous, exploitative practices.
This leads to a high turnover of staff and therefore no esprit de corps and pride in what employees do. This in turn is picked up by customers who will either not return to the establishment and when they go home paint a negative picture of the island.
The maxim ‘a fair day’s pay for a fair day’s work’ should be the mantra but this editorial would appear to take the opposite view which is one not only of bad economics but also smacks of maintaining the backward status quo. Yes, all too often the unions don’t exactly conduct themselves with restraint but on this occasion I for one hope that some form of minimum wage law IS established as it will benefit both staff.AND employers.
Neroli
February 11, 2018 at 10:44Totally agree with you
Philippos
February 11, 2018 at 19:31Aha!…but this is Cyprus…and it has to be paid??? The article is correct about one thing, the market for tourist industry labour is international and seasonal, lots of cash changes hands between employers who know the law but want to keep costs down and “Labour” that does not know the law, and wants a job. They will still get treated like animals and all that you say is true. It translates to the customer and dulls the experience of holidays in Cyprus. It creates a cycle of cheaper labour , even worse labour, even more disappointed clientele who wont return or wont pay over the top for rubbish . Just reflect on the expenditure per head figures in a country not known for cutting prices and they tell you everything about our industry here.
DAC8553
February 11, 2018 at 09:06I wonder whether this article is a “do not do warning”, a wish for economic re destruction of Cyprus ore a admonition towards the “silly” Cypriots for their choice.
Gipsy Eyes
February 11, 2018 at 08:50I read through this article with mounting incredulity until I recalled all the objections to a minimum wage we had and have in the UK:
1. government efforts to reduce unemployment “will be dealt a blow”!
2. because businesses “will be reluctant to hire new staff when their wage bill has increased by law”
3. It will discourage “the opening of new businesses that will be wary of having to pay the government-set minimum wage”.
4. Even worse, “it would encourage some employers to hire workers on a part-time basis”. and there will be “a surge of undeclared work, which would mean workers would have few, if any rights”
5. And finally ” businesses that are in trouble and struggling might close down if their wage bill increases”.
I know from personal experience most of the above already exist in Cyprus along with human slavery and abuse of the human rights of certain migrant workers under the current “minimum wage” arrangements.
I also know from personal experience that most of the above exist in the UK where I live. There is a difference however, we now have the lowest unemployment we’ve had for years and the vast majority of businesses in the UK are small. Anything from a street food or coffee stall to small scale high tech manufacturing plant. This is because the positives currently seen in the UK have absolutely nothing to do with the government.
In short, paying workers a decent wage, whether it’s set by the government, unions or the companies themselves is not an impediment to a successful economy. It is an advantage and it is a moral prerequisite. It is not a communist conspiracy even if it may be sell out to the unions by Anastasiades. After all workers are an essential part of the economy and their welfare and happiness and sense of having a personal interest in the economy will ensure they have an interest in the success of that economy!
Neroli
February 11, 2018 at 10:43God comment Gypsy!
Evergreen
February 11, 2018 at 10:46Indeed.
Gipsy Eyes
February 11, 2018 at 12:17I’m sure my comment doesn’t have the status of a deity.
Neroli
February 11, 2018 at 13:19You’re right better change it post haste!
Barry White
February 11, 2018 at 14:14Too late Ms. N.
Barry White
February 11, 2018 at 12:27The Deity, She will be angry.
Gipsy Eyes
February 11, 2018 at 14:10Which particular Deity are you referring to?
Barry White
February 11, 2018 at 14:14Neroli mentioned God (since been changed), She.
Evergreen
February 11, 2018 at 10:46A great comment.
SuzieQ
February 11, 2018 at 16:28Well said!
Philippos
February 11, 2018 at 19:40The HUGE Point that you are missing is that it doesn’t work like that here. Cyprus does not have the diverse innovative economy that UK has. I don’t just mean for manufacturing and commerce, the whole structure here is archaic and disjointed and a minimum wage per industry reflecting its “Weighting’, is a joke where every employer works to avoid paying it, mainly to those who deserve it most. There are bigger fish to fry here to drag us out of the 1960’s that are and will continue to be completely ignored because they are not seen to suit the Oligarchical Families.
oratis
February 11, 2018 at 19:47then there should be no weighting, there should be a point blank minimum wages, just as there is in some other countries.
perhaps in the agriculture industry where local don’t work in then there could be a slightly lower minimum wage but not much lower.
Neroli
February 12, 2018 at 08:26Why should non locals who work so hard in the Agricultural sector not get a decent minimum wage??
oratis
February 11, 2018 at 19:44at the end of the day the U.K. has a relatively successful economy and having a minimum wage hasn’t stopped that. if it works for the U.K. where I’ve been told the prices products in the shops are not much different to here, then it’ll work here.