Cyprus’s three major trade unions will request an urgent meeting with the president this week over the government’s decision on the minimum wage, escalating a labour dispute that shows no sign of ending despite last week’s decree.
SEK, PEO and DEOK will send their meeting request to the Presidential Palace within days—possibly today—accompanied by a memorandum outlining their positions on four key labour issues, including the minimum wage settlement they consider inadequate.
The unions say changes remain possible despite the decree’s publication if there is political will. They plan to press the president on three specific points: the wage amount itself, the decision against hourly payment, and ensuring the figure aligns with collective bargaining agreements.
The minimum wage was set at €1,088 monthly, though the total cost to employers reaches €1,255 when contributions are included. Trade unions remain sharply dissatisfied and unwilling to wait another two years until the next scheduled review to see their demands met.
Employer organisations KEVE and OEV, meanwhile, have expressed their own dissatisfaction—but from the opposite direction.
They consider the minimum wage too high and have warned of chain-reaction effects across the economy, including price increases and viability problems for numerous businesses. Any upward revision following union pressure would likely trigger strong employer pushback.
The unions’ memorandum will address four labour issues beyond just minimum wage levels. These include concerns about third-country workers, claiming employers apply existing agreements selectively and have “completely deregulated” labour markets in certain economic sectors.
The document will also call for extending collective agreements to more economic sectors and linking public project bids to employer compliance with collective bargaining.
Finally, unions want immediate implementation of the Ergani 2 system, which would enable more comprehensive labour market monitoring and drastically reduce violations.
Employer organisations are expected to hold their own meetings mid-month to determine their next steps, though their position is already clear from OEV warnings about economic impact.
The dispute unfolds as Cyprus manages multiple pressures: the festive period, its new EU Council presidency assumed on 1 January, and approaching parliamentary elections that have intensified political manoeuvring.
Read more: