A new negotiation framework drawn up by the government to solve the ongoing disagreement over the Cost of Living allowance (CoLA) received a lukewarm reception from employers and unions on Tuesday.

The framework “does not appear to reflect a modernised system with a fairer distribution,” general secretary of the Cyprus employers and industrialists federation (Keve) Filokypros Rousounides said.

He added that the document sent by the ministers of labour and finance is not a final proposal and contains several ambiguities requiring clarification.

“Unfortunately, at first glance, it does not seem to reflect what was discussed in previous meetings,” Rousounides said.

“We need to examine it further before forming a detailed position.”

He said that employer organisations will go through the framework in the coming days to evaluate its potential impact on public finances, the wider economy, and business competitiveness.

Rousounides said Keve and the employers and industrialists organisation (Oev) will hold a joint executive meeting in the coming days to review it.

“It is a very serious issue. Without studying and analysing the document in depth, it would not be possible to go to a meeting immediately,” he said.

Oev director general Michalis Antoniou said in a social media post on Monday evening that “important points of the document are unclear, contradictory, and include references that complicate convergence efforts.”

The framework was issued on Monday evening as unions were meeting about their next moves about CoLA.

In perhaps a rare moment of agreement with employers, general secretary of Peo union Sotiroula Charalambous said the framework “lacks significant elements and contains many ambiguities.”

She said the heads of the four main unions – Peo, Sek, Deok and Pasydy – had contacted the ministers for clarification while the 13 union organisations were in Monday’s meeting.

On Tuesday, unions repeated that they were insisting on 100 per cent of CoLA being paid to workers.

Charalambous said the unions asked for clear guidance on key points, including the framework for cost-of-living allowance (CoLA), the implementation of agreements, and the extension of CoLA to other employees.

She said no new meeting with the ministers has been scheduled yet, adding that the unions are awaiting further clarification and possible mediation proposals.

CoLA was suspended during the 2013 financial crisis and was partially restored ten years later at 67 per cent of its previous value. Trade unions are now demanding full restoration to 100 per cent, arguing the current level does not cover rising living costs.

Recent government proposals include a tiered CoLA system favouring lower-paid workers and extending it to all employees, who work in both the public and the private sectors.

Employers insist a rethink of CoLA must mean it does not impact competitiveness.

The dispute led to a three-hour nationwide strike in September.