The hoteliers’ association (Pasyxe) on Friday rejected the labour minister’s mediation proposal as they could not agree on it.

Labour Minister Yiannis Panayiotou’s proposal did not satisfy some members of the association, Pasyxe Director Philokypros Roussounides told the Cyprus News Agency (CNA) on Friday.

A day earlier Panayiotou had said that “agreement in principle for renewal of the hotel industry’s collective agreement was signed by the heads of the employers’ associations and trade unions and was expected to be ratified internally by each side.”

Completion of the process and the signing of the renewed collective agreement would ensure labour peace in the hotel industry until the end of 2027, the minister said.

He added that he expected that protecting “normality and stability would be recognised by all as the most important priority.”

It emerged that Syxka-PEO and Ouxeka-SEK accepted the mediation proposal but the second employers’ association, Stek, is expected to readdress the matter next week.

Early in November the hotel unions had agreed in principle to new, improved collective terms for their workers after a “last ditch” meeting after months of intensive negotiations and rejection of two previous proposals.

The proposal had provided for the immediate payment of a two per cent increase and additional benefits from April 2025, which would bring the increase to 3.25 per cent. By 2027, the increase was to cumulatively amount to seven per cent.

The minister had said the proposal also guaranteed a 13th salary, of which 10,000 workers in the industry currently do not get.

He said those on minimum wage would get a further 3.5 per cent increase.

In combination with the 7.2 per cent already given, in less than two years people in the sector are not covered by a collective agreement, would receive a total increase of 10.7 per cent, Panayiotou said.