Labour minister in first of long round of CoLA meetings

Labour Minister Kyriacos Koushos met with trade union PEO on Monday to discuss the cost-of-living allowance (CoLA), which all trade unions have been demanding move forward as soon as possible.

PEO secretary-general Soteroulla Charalambous met with Koushos as part of a series of one-on-one talks the minister will have with representatives from all the trade unions on the issue.

On the sidelines of a deal made with dock workers earlier in the day, Koushos said that next week he will meet at group meeting with worker’s groups and trade unions.

“It is an attempt to find common ground, because as it is well-known the Labour Minister does not have decisive role in on the CoLA issue, as it is clearly an issue of an agreement between societal partners,” he said.

The role of the labour ministry is to mediate the issue, he added, in hopes that there is a positive outcome.

Koushos did not elaborate on the details of his meeting with Charalambous, saying that he prefers to meet with all the parties interested, and have the group meetings before making statements.

On Tuesday, Koushos will meet with trade union SEK, Wednesday with PEO again, and on Thursday and Friday with OEV and Keve accordingly.

The employers’ organisations and unions signed a transitional agreement at the end of 2017, maintaining 50 per cent of the rise in the retail price index is incorporated in wages once a year.

Fully restoring CoLa would come at an estimated €150 million added to the public sector payroll which has not been factored into the 2023 state budget.

As businesses face stark inflation rates and spiralling energy costs, they say full restoration of CoLa is not viable as it effectively translated to nine per cent pay rises on a gross salary. Unions have threatened strikes if their demands are not met.

If unions and employers do not reach an agreement, the transitional CoLA agreement that applies since the beginning of 2018 would remain. There is a provision in it which stipulates that if the two sides fail to agree on a new CoLA formula the transitional agreement stays in force.