The labour dispute in Cyprus’ hotel industry may take a decisive turn today, as employers and unions remain at odds over the collective agreement signed in December 2024.

The two sides are locked in a stand-off over how the agreement’s provisions should be applied.

Unions accuse some employers of failing to comply, while employers counter that the disputed issues are not clearly defined in the agreement.

Labour Minister Yiannis Panayiotou will meet employer representatives this afternoon to seek clarifications and defuse tensions.

Employers argue that collective agreements apply only to union members and cannot extend to staff on personal contracts.

They have also criticised the minister for meeting unions several times while delaying discussions with them.

The Labour Ministry insists its goal is to bridge the divide, stressing that both sides must respect the industrial relations code and uphold the agreements they sign.

Unions Sek and Peo were expected to announce their next steps today but have delayed any decisions until next week due to procedural issues.

They are awaiting updates from the minister following his talks with employers, with a possible follow-up meeting on the cards.

The dispute comes days after Parliament approved new regulations amending the hotel employees framework.

The changes, among others, guarantee a 13th salary for all hotel staff and gradually increase employers’ contributions to the provident fund, from 5 per cent to 5.25 per cent in 2026 and 5.5 per cent in 2027.  

They also boost holiday pay for staff working on Christmas Day, New Year’s Day and Easter Sunday.