Negotiations over the automatic cost-of-living adjustment (CoLA) reached an impasse Monday as both employers and trade unions rejected key elements of government proposals, ensuring Thursday’s general strike will proceed.
Labour Minister Yiannis Panayiotou presented a four-point modernisation framework to social partners, proposing universal coverage for all workers alongside mechanisms linking adjustments to economic performance. Neither side accepted the complete package.
The meeting represented an attempt to revive dialogue on renewing the 2023 transitional agreement governing wage adjustments tied to inflation.
Government presents four-point framework for automatic wage adjustments
The ministerial proposal contained universal extension of cost-of-living adjustments to cover all workers; graduated allocation emphasising lower-wage earners and middle-class workers; safeguards ensuring adjustments do not compromise economic competitiveness; and criteria preventing inflation feedback loops.
Trade unions accepted universal coverage but rejected graduated distribution and economic performance linkages. Employers opposed universal extension while accepting discussions on graduated payments provided total costs remain unchanged.
Both sides found common ground on reviewing inflation measurement methodologies and economic safeguards, though disagreements persisted on implementation details.
Strike proceeds Thursday despite ministerial intervention attempt
Trade unions SEK, PEO, PASYDY and DEOK confirmed strike plans within two hours of the meeting. Their joint statement indicated employers “confirmed their fixed position for changes to provision conditions that essentially dismantle the institution.”
Employer organisations maintained opposition to expanding coverage while expressing willingness to discuss targeted increases for specific worker categories without increasing aggregate labour costs.
The ministry stressed achieving a comprehensive agreement, stating that continued mediation could create conditions for successful proposal submission. Officials called for good-faith negotiations, avoiding confrontational positions.
The planned action will affect public services, semi-governmental organisations and portions of private sector, tourism and construction industries.
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