Talks between Cyprus trade unions and the Labour Minister Yiannis Panayiotou ended on Tuesday without an agreement on the future of the Cost of Living Allowance (CoLA). A new meeting will be scheduled for either Friday or Monday, according to union officials.

The two-hour meeting followed discussions held on Monday between the minister and the employers’ organisations Oev and Keve. The government has put forward four parameters for the modernisation of CoLA, but unions said the details remain unclear.

After the meeting, Sek general secretary Andreas Matsas said nothing new had been presented to give unions hope for a positive outcome. He explained that unions had asked for clarifications on the four parameters and warned that some of the conditions, such as tying CoLA to economic growth rates, could undermine the mechanism. He also said no concrete proposal was given by the minister.

Matsas noted that the government’s idea of extending CoLA to all workers was still vague. He said unions reminded the minister that progress could come by linking CoLA to the minimum wage, expanding collective agreements, and offering tax incentives to firms that apply them.

Peo general secretary Sotiroula Charalambous said unions went to the meeting to understand the government’s approach. She argued that the government’s definition of “modernisation” of CoLA changes its original philosophy, a point where unions have strong objections. She added that the issue of extending CoLA to all workers also lacked clarity.

Deok president Stelios Christodoulou said the government’s proposals alter the philosophy of CoLA. He pointed out that linking CoLA to development rates and preventing inflationary effects had already been addressed in the transitional agreement. He rejected the idea of setting specific growth thresholds and argued there was no evidence that CoLA increases fuel inflation.

Christodoulou added that the only parameter unions support is the universal application of CoLA, but even on that, no clear framework was given. He also raised the option of using the EU directive on collective agreements, which the government has not accepted.

Union leaders stressed that dialogue will continue but time is running short. They said workers expect progress after last week’s general strike and that unions may soon call a new joint meeting to decide their next steps if no clear answers are given.