New Strike Looms Over ATA Impasse in Cyprus?

Labor peace is once again at a critical juncture due to discussions surrounding the Automatic Cost of Living Adjustment (ATA). Despite initial positive signs, unions are expressing strong dissatisfaction with the new approach of the Ministers of Labor and Finance, which appears to favor the proposals of the employers' side.

Andreas Matsas, General Secretary of SEK, stated that the meeting reversed the momentum and essentially nullified the agreement process. Sotiroula Charalambous, General Secretary of PEO, expressed fears that the proposed changes would lead to a limited form of ATA.

According to the trade union movement, the ministers proposed a reduction in the maximum amount for the ATA and linking it to economic growth and inflation. Furthermore, instead of the initial agreement for full restoration of the institution in 3 years, a period of 5 years was proposed.

From the employers' side, Michalis Antoniou, General Manager of OEB, stressed the need for the final solution to be acceptable to the employers' side as well. Filokypros Rousounides, General Secretary of KEBE, stated that there is still "light at the end of the tunnel" if mutual positions are taken.

The Ministers of Labor and Finance called on both sides to take responsibility, while the unions are planning a pan-union meeting on Monday, not ruling out the possibility of strike action.

The Ministry of Labor is trying to mediate and prevent the escalation of measures.

Watch the report by Kleio Vourkou.