Employers’ organisations OEB and KEBE have rejected the government’s draft agreement for a permanent framework on the Cost-of-Living Allowance (ATA), saying it is unsatisfactory in several key areas and therefore “cannot be accepted or signed as is”.
Reading a joint statement after a four-hour meeting in Nicosia, OEB president Giorgos Pantelides said a last-minute clause added by the government had been decisive in the decision to reject the ATA proposal. The clause calls on employers to authorise the finance and labour ministers to extend ATA coverage to more workers.
Pantelides added that the draft includes provisions related to the national minimum wage which go beyond the transitional agreements of 2017 and 2023 and “cannot be accepted as currently worded”, despite the employers’ side acknowledging the inclusion of ATA in biennial wage reviews.
He said OEB and KEBE remain committed to negotiations, “focused on dialogue to reach a mutually acceptable agreement”.
The organisations said they had informed the president of the republic about their decision, while reiterating their willingness to achieve a permanent agreement on ATA, especially regarding 100% coverage for low-income workers eligible for the allowance.
Pantelides emphasised the need for clear safeguards and modernised mechanisms to ensure both competitiveness for businesses and sustainability of the public payroll.
Asked about the president’s intervention, he said they appreciated his involvement and considered it crucial in helping to find a solution to this long-standing issue.
KEBE president Stavros Stavrou added that the wording of certain clauses could be interpreted in ways that concerned members, particularly regarding the potential expansion of ATA beyond the minimum wage, and said the issue requires clarification.
Both organisations confirmed they remain at the negotiating table “with every good intention to reach a solution that will be mutually acceptable to all”.
Also read: Trade unions and employers to decide on ATA negotiations today
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