The cost-of-living allowance (CoLA) is a “blessing” and will not be scrapped, Labour Minister Yiannis Panayiotou said on Thursday.

“CoLA will be expanded so that it continues to operate, and, as previous presidents of the Republic have repeatedly said, it is a blessing for workers,” Panayiotou told Sigma TV.

He stressed that the allowance would be “improved, modernised and protected,” and reaffirmed the government’s commitment to its continuation. “Our government supports maintaining and strengthening CoLA,” he said, adding that the president’s policy programme included explicit provisions for it.

Panayiotou also pledged to act as a mediator between employers and trade unions in an effort to reach a consensus.

“Differences in approach between employers and unions are understandable,” he said. “But the state must ultimately serve the public interest.”

For an agreement to be reached, he said, both sides must engage constructively so that social dialogue can bear fruit.

Deliberations on CoLA are expected to resume in two weeks, as Panayiotou and representatives of Cyprus’ social partners will travel to Geneva to attend the International Labour Organisation (ILO) general assembly. The assembly gathers delegates from 187 countries.

Panayiotou will address the ILO on the need for a new social contract and will also speak at the founding session of the Global Coalition for Social Justice, where he will focus on strengthening social dialogue as a means of improving societal well-being.

The ILO general assembly will also hear from Employers and Industrialists Federation (Oev) head Michalis Antoniou on Monday, and from trade union SEK leader Andreas Matsas on Wednesday.