Employers’ federation to hold emergency meeting on cost-of-living allowance

The Employers and Industrialists Federation (Oev) will hold an extraordinary meeting via teleconference on Monday at 5pm to discuss the issue of the Cost-of-Living Allowance (CoLA), General Director Michalis Antoniou told the Cyprus News Agency (CNA).

He said the extended executive committee meeting aims to provide updates and exchange views but stressed that “decisions have already been made and the negotiating team’s mandate cannot be changed.”

By Monday’s meeting, Antoniou said, the decision of the trade unions’ all-union conference — set to take place earlier in the day — is expected to be known. He expressed hope that no decisions would be taken “that would burn bridges” between the two sides.

“We remain committed to finding an agreement,” Antoniou said. “However, the agreement must include specific parameters to be acceptable to us. There can be no deal through imposition — we need safeguards that protect public finances, the state payroll, and the sustainability of businesses.”

He added that there is room for a better understanding of each side’s positions, noting that considerable time has passed since the last joint meeting between employers and unions.

Antoniou said the unions’ strong reaction was unjustified, as Oev’s proposals contained “nothing that hasn’t been discussed in the past.”

“Our proposals include nothing new; perhaps they have not been fully understood,” he noted.

He clarified that Oev’s goal is not to abolish CoLA but to rationalise it, despite the federation’s longstanding disagreement with the system.

“We have accepted that we will coexist with the system, but we want to make it safe for the sustainability of our businesses and public finances,” Antoniou said.

Asked whether another meeting with the unions could take place, he said this remained possible if both sides are well prepared. “Everyone wants an agreement,” he said, adding that “with a little effort, the safeguards requested by the employers can be incorporated into a mutually acceptable text.”

After meeting with the ministers of finance and labour on Friday, the trade unions said they left disappointed, citing a deadlock in the CoLA negotiations. They have called an all-union conference for Monday at 3:30pm, during which strike action will also be on the table.