Unions on Monday reiterated their position on the Cost of Living Allowance (CoLA) following their meeting with President Nikos Christodoulides, government spokesman Konstantinos Letymbiotis said.

Letymbiotis said that during the meeting, the unions stuck to the position they had expressed in a meeting with the employers organisations on Friday, which resulted in the drafting of a preliminary framework of common ground on CoLA.

During their meeting, the president and the unions also discussed their views on labour issues and the upcoming tax reform.

Both Monday’s and Friday’s meeting had also been attended by Labour Minister Yiannis Panayiotou and Finance Minister Makis Keravnos, who have functioned as mediators between the employers and unions throughout the lengthy talks on the matter.

The meeting follows Sunday’s discussions between the President and the heads of the employers’ organisations.

Employers’ organisations are expected to hold a joint meeting to reach a final decision on their position regarding CoLa on Wednesday.

CoLA, a mechanism to adjust wages in line with inflation, was suspended during the financial crisis but later partly restored.

Trade unions have been demanding its complete reinstatement to safeguard workers from soaring prices, while employers caution that such a course of action would escalate labour costs and jeopardise business competitiveness.

So far, the government’s mediation efforts have taken the form of a series of structured meetings in Nicosia, with the aim of securing a balanced agreement and the President voicing his optimism that an agreement would be reached soon.