The Cyprus Employers and Industrialists Federation (Oev) has highlighted some of the key labour issues it addressed during 2023, ahead of its annual general assembly scheduled for Tuesday, April 23, an event that will be attended by president Nikos Christodoulides.
Oev noted that by the end of 2023, businesses continued to face significant challenges, primarily stemming from the shortage of human resources, across almost all sectors of economic activity, and inflation.
It stressed that the containment of labour costs, which have disproportionately increased in recent years, poses a significant challenge in light of the increase in the national minimum wage as of January 1, 2024, and ongoing dialogue on the Cost of Living Allowance (CoLA).
During 2023, Oev took on a leading role, receiving continuous feedback from businesses and submitting specific recommendations to the relevant ministries.
Oev adjusted its objectives and strategy accordingly to support the economy and businesses, with particular emphasis on the peaceful renewal of collective agreements, containing labour costs, and preserving the competitiveness of the Cypriot economy, the federation added.
Oev also highlighted significant labour developments in 2023, including the January 2023 salary increase of 4.36 per cent on new basic salaries due to CoLA, where applicable, based on the transitional agreement signed between social partners on July 28, 2017.
Additionally, it noted that the new transitional agreement for CoLA came into effect on June 1, 2023, and is valid until June 30, 2025, during which time a comprehensive and permanent agreement on CoLA will be pursued.
According to the new agreement, salaries are adjusted upwards by 66.7 per cent (from 50 per cent) of the annual increase in the Consumer Price Index (excluding excise taxes) with retroactive effect from January 1, 2024.
Oev also mentioned the implementation, in January 2023, of the national minimum wage for the first time and added that despite some reservations, the Decree on Minimum Wages was issued in September 2022.
What is more, Oev stated that in response to unauthorised strikes by workers in vital organisations and threats of strike action at airports, public transport, and semi-governmental organisations in violation of labour institutions, it once again proposed legislation for the Agreement on the Resolution of Labour Disputes in Essential Services, which Oev, Sek, Peo & Pasysy signed in 1999.
Furthermore, it noted that in 2023, the revised Strategy for the Employment of Foreign Labour was implemented, following intense consultations in 2022.
The key element of the strategy is its modernisation to align with todays realities and the developmental needs of the economy, as well as to facilitate businesses that have demonstrably struggled to find suitable local or EU labour, to employ foreign personnel from third countries, thereby reducing time-consuming bureaucratic procedures, Oev said.
In the announcement, Oev also stated that in 2023, it engaged in intense and multifaceted activity on a range of other labour-related issues, including legislative processes.
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