Trade unions SYXKA-PEO (ΣΥΞΚΑ-ΠΕΟ) and OUXEKA-SEK (ΟΥΞΕΚΑ-ΣΕΚ) expect a response from the Ministry of Labour in the coming days regarding their request for a subsidy scheme for workers in the hotel industry, their representatives told the Cyprus News Agency, noting that bookings for May remain low.
The General Secretary of SYXKA-PEO, Neophytos Timinis, told CNA that the Ministry had been waiting for April payment data in order to have a complete picture before decisions were taken on extending the subsidy scheme.
“We had a meeting at the Ministry of Labour on 29 April, where the data and forecasts for May were presented,” he said. Among other things, he noted that the meeting examined booking statistics, cancellations and the emerging trend in reservations, based on forecasts.
According to him, the figures “show that there is some positive movement, but not what would be expected for a good tourist season”, estimating that May will also remain at low levels.
Mr Timinis said that, because April payments had not yet been made on the day of the meeting, the Ministry of Labour could not have a full picture.
“We expected that once workers were paid, we would know and the Department would be able to carry out an assessment, to see whether workers who were on unemployment benefit had returned, especially the category of those who were dismissed at the end of October. We would know whether the workers had returned,” he said.
Mr Timinis expressed concern about workers who had not started work by at least the end of April, as, he said, there is a risk they could lose the unemployment benefit subsidy for the winter period, since they will not have completed six months of employment.
He noted that the unions still do not have a complete picture as to whether all workers have returned, but are continuing to gather information. He clarified that the Department of Labour Relations has a more immediate picture through the Ergani system, once payments are expected to be completed this week.
Mr Timinis said that “we have isolated cases of workers who did not return”, mainly in the free Famagusta district and some in Paphos.
“We have information on isolated individuals and we are waiting for more information from our inspections. Through the Ergani system, the data can be found more directly,” he said.
Asked whether all hotel units had opened, he said that, according to information received by the unions, a very small number of individual hotels belonging to groups had remained closed. However, he said that in those cases, employees were absorbed by the groups’ other units.
Regarding when a response is expected on the possible continuation of the subsidy scheme, he said that “we are awaiting a meeting” with the Ministry, after the April assessment is carried out.
“We expect the new subsidy scheme to be presented in the coming days, based on the findings of the assessment,” he said.
He also noted that it is commonly acknowledged, and supported by all the data from the Ministry of Labour, the Deputy Ministry of Tourism, hoteliers and airport figures, that May will also remain at low levels. Therefore, he estimated that the subsidy scheme will continue in May as well.
Asked whether there is an issue of further extension beyond May, he said that at the meeting at the end of April, a possible extension into June had also been put on the table.
“Our position is that we should look at it month by month, step by step, with an assessment carried out each time,” he said.
Asked to comment on whether cases had been recorded of the Collective Labour Agreement not being implemented, Mr Timinis said that implementation of the agreement “goes without saying”.
“When a hotel asks for employment support, in order to continue employing workers, and not a subsidy for the hotelier to cover losses, the implementation of the sectoral agreement goes without saying,” he said.
He noted that, in the past few hours, following the payment of salaries, “we have received initial information about a very small number of hotels, for the time being, which did not grant the increase as provided for in the 2024 Memorandum of Understanding for the renewal of the sectoral agreement”.
He said that inspectors, in consultation with the corresponding SEK union, “are already in contact with the hoteliers”.
He added that since the unions are acting responsibly and constructively at the negotiating table when issues concerning the tourism industry arise, with a responsible and credible stance, “we expect that every last hotelier will rise to the occasion and consider the damage caused if it emerges publicly that they are receiving subsidies while failing to meet their obligations”.
For his part, the General Secretary of OUXEKA-SEK, Michalis Frangou, said that the majority of hotel units which had either partially or fully suspended operations have reopened, also in line with the relevant legislation requiring them to do so by 1 April.
He added that most employees have also returned, with only some isolated cases recorded among seasonal workers who are dismissed and then rehired.
Mr Frangou said that at the meeting held at the Ministry of Labour on 29 April, an extension of the subsidy scheme for May and June was requested, adding that employers had made the same request. He stressed, however, that the scheme is always provided where there is a documented need.
“We have not yet received an answer or indication from the Ministry,” he said, adding that during the meeting, the unions asked the Minister to examine the possibility of applying to European funds for support.
He also noted that “the picture we had was that there was indeed a serious problem”.
He said he expects some figures within the next week, referring to reports of good bookings at some hotels, while at others bookings have stabilised.
“The situation remains confused,” he said, noting that every international development affects and changes the data.
He also said that the worst-case scenario would be for airlines to reduce or stop routes.
Asked when the Ministry’s response to the request for an extension of the subsidy scheme is expected, Mr Frangou said it should come “as soon as possible, and certainly before the middle of the month, so that employers can prepare”.
Asked whether there had been complaints regarding non-implementation of the agreement, Mr Frangou said: “There are none. Employers have given the increase provided for in the Collective Agreement. There is no problem regarding what was agreed, to their credit.”
Source: CNA.
