‘We want the law respected’ hotel unions say as threaten strike

The labour ministry on Monday stepped up efforts to find a compromise on the future of the Cost of Living allowance (Cola) as hotel unions continued to threaten to strike.

Minister Yiannis Panayiotou was due to meet union representatives on Monday, and will later in the week meet employers. A media blackout on official statements remains in place to prevent public tensions from escalating.

Unions claim that some hotels are ignoring agreements. Sek hotel workers representative Michalis Frangou told CyBC radio on Monday that repeated violations of a February 2024 deal left unions with no choice but to consider measures.

“Some employers are still not following what was agreed,” he said.

“Our position is simple: we want the law and the agreement respected. Nothing more, nothing less.”

He added that unions have sent letters, held meetings, and kept the ministry informed. He urged that as the tourist season continues, solutions should support workers, not create a crisis.

Meanwhile, president of the Cyprus hotels association (Pasyxe) Thanos Michaelides acknowledged the union’s concerns but insisted most hotels respect the terms.

He noted legal procedures exist for dispute resolution, adding that workers can only take action if procedures reach a deadlock.

He too urged caution during peak tourism season. “Workers are the heart of this industry,” he said, warning that unrest could damage both staff welfare and visitor experiences.

Michaelides agreed that rule-breakers must be held accountable. However, he cautioned against generalising the problem across the sector.

He added that rising profits benefit both employers and employees, with pay rises already in place under contract.

Unions have also raised issues including illegal worker hiring, misuse of the national health scheme (Gesy), and failures to apply welfare fund rules.

Michaelides responded that any such complaints should be addressed through proper legal channels, rather than painting the whole industry as non‑compliant.

The labour ministry confirmed that intensified talks on Cola have been underway for several weeks. “The dialogue cannot be allowed to drag on endlessly or lose its purpose,” the labour ministry said.

“Our goal is to generate enough convergence for a sustainable agreement.”

At a joint conference on July 10, all major unions warned that failure to fully restore Cola in the coming days would lead to strike action.

Both Sek and Peo unions have threatened to take measures if the agreed changes are not seen when they are paid for July.

“We will not attend any meeting unless there is clear intent to make the payments by the end of July,” Peo’s Neophytos Timinis said.

He added that while official complaints are not numerous, they involve major hotel chains representing roughly 30 per cent of the industry, raising wider concerns about sector-wide compliance.