In Cyprus, only one in two employees is covered by collective agreements, and in the private sector, only one in five, according to the chairperson of the Parliamentary Committee on Labour.
A few days ago, during a discussion in the parliamentary Labour Committee, the issue of implementing collective agreements in the hotel sector was once again brought to the fore. While a collective agreement had been signed in the sector, the employer side appeared to backtrack and interpret parts of the agreement differently during the parliamentary debate—at least in terms of provisions that were decided to be granted legislative force.
Regulations and minimum benefits
As stated yesterday by the chairman of the Parliamentary Committee on Labour, Welfare and Social Insurance, Andreas Kafkalias, speaking on state radio, the regulations promoted by the Ministry of Labour on the matter—despite objections voiced in the Committee—are expected to proceed to the House plenary largely unchanged, though he did not entirely rule out the possibility of amendments being submitted. He said that the debate on the principle of the regulations has been concluded and that the regulations are likely to be brought before the plenary either on 3 July or, at the latest, on 10 July, which is the final parliamentary session for legislative work.
Mr Kafkalias also pointed out that although collective agreements and the memorandum of understanding signed for 2020–2024 are in place, there has been a retreat from the employer side, citing procedural issues.
He stressed that it is not ideal for labour matters, rights, and worker benefits to be regulated by legislation. However, he explained that the regulations under review ensure minimum benefits for employees. The genuine protection of workers, he added, comes through the negotiation and, most importantly, the implementation of agreed terms in collective agreements.
13th salary and other provisions
He further argued that the need for legislative regulation arises due to reports that a portion of employers in the hotel industry are not implementing the terms agreed in collective agreements. As a result, advancing with these regulations was deemed necessary. The specific regulations currently before the House of Representatives ensure the following minimum benefits:
- An increase in the employer’s contribution rate to the Provident Fund for the years 2026 and 2027.
- Double daily wage for three public holidays (Christmas, New Year’s Day, and Easter), while the rest of the holidays remain under existing provisions.
- Payment of the 13th salary to become a mandatory practice by employers.
These elements are included in the regulations. However, the collective agreements contain many additional benefits, such as incremental wage increases for the next three years, making their observance and broader implementation crucial for ensuring that all workers are protected.
Extension of collective agreements and the EU
Mr Kafkalias stated that during the committee discussions, a position was put forward suggesting that collective agreements should apply only to workers who are members of trade unions—excluding a large portion of the workforce. This, he said, is unacceptable both for the legislature and for trade union organisations. It brings to the fore the broader debate on the need for the mandatory application of collective agreements and their extension to more sectors.
He noted that the Republic of Cyprus is obliged, under the relevant European directive, to take measures to extend and enforce collective agreements. Cyprus is one of the few EU member states that has not yet adopted the directive. This, as the Labour Committee chair underlined, is particularly problematic given that across Cyprus, only one in two employees is covered by collective agreements, and in the private sector, only one in five. Therefore, the discussion on the measures the Republic must adopt is ongoing.
Regarding the upcoming vote on the regulations, Mr Kafkalias estimated that—although not certain—they are likely to be passed unanimously, as no significant objections are currently apparent. He emphasised the importance of respecting both collective agreements and the accompanying regulations, as they establish the minimum entitlements for workers.
Also read: Cyprus first in EU in youth unemployment reduction
Source: Economy Today
