Sek and Peo trade unions are moving forward with efforts to convince the Labour Ministry to look into the issues of expanding collective agreements to a larger percentage of the workforce, as well as reducing the 12% pension penalty for early retirement.
Sek, through its newspaper “Labour Voice,” emphasised the importance of expanding collective agreements. The trade union believes that broader coverage of these agreements is vital for safeguarding the rights and benefits of workers. Meanwhile, Peo seized the opportunity to restate its demand for the reduction of the pension penalty from 12% to allow individuals to retire at the age of 63 instead of the current retirement age of 65.
Sources close to the matter reveal that both issues are set to feature prominently in the forthcoming session of the Labour Advisory Council, scheduled to convene on July 21.
Sek remains steadfast in its commitment to pursuing the expansion of collective agreements. The topic was extensively discussed during a recent meeting with President Christodoulides, as reported by “Labour Voice.” Sek asserts that increasing the coverage of these agreements is a crucial step towards ensuring fair and just working conditions for a significant majority of employees, aiming to cover at least 80% of the workforce as per a directive from the European Commission.
Sek believes that expanding collective agreements will bring much-needed stability to the labour market and alleviate any concerns related to deregulation.
Labour Minister acknowledges union demands
Minister of Labour, Yiannis Panayiotou, acknowledged the concerns raised by the unions. In an interview with the Cyprus News Agency, he confirmed that proposals are already being developed to address the issues. The minister stated that careful consideration is being given based on an in-depth actuarial study regarding the pension penalty reduction.
He further clarified that while adjustments are being contemplated, the complete abolition of the penalty is not on the table as it would entail lowering the retirement age limit.
Additionally, Panayiotou revealed that his ministry has prepared an initial framework comprising qualitative and quantitative incentives to encourage the expansion of collective agreements in the private sector.
This proposal will be presented and discussed during the upcoming session of the Labour Advisory Council.
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