Confirmation of Disagreement Between Government and Employers Regarding Implementation of Widespread Job Application System
The dispute over the Automatic Cost-of-Living Allowance (ATA) in Cyprus remains deadlocked, with the government and employers at odds. On Monday, the Organisation of Employers and Industrialists (OEB) and the Cyprus Chamber of Commerce and Industry (CCCI) returned to the ministry for fresh talks regarding ATA.
The government's framework for ATA includes four parameters: extending ATA to all workers, fairer distribution, safeguards for competitiveness, and criteria to avoid inflation. However, employers have expressed reservations about the universal application of ATA, particularly in the private sector.
CCCI Director General Phyloctetes Rousounides stated that employers attended the talks to demonstrate their commitment to social dialogue. He reiterated that employers' focus is on modernizing the ATA mechanism with a fairer distribution. OEB Director General Michalis Antoniou shares this stance, echoing the employers' rejection of the government's proposals for the universal application of ATA across both public and private sectors.
On Tuesday morning, the Labour Minister is scheduled to meet with trade unions for separate consultations. It is not specified who will meet with the unions to discuss the distribution of ATA. The labour side is expected to discuss how ATA could be extended to all workers, its implementation method, potential gradual phasing, and applicable safeguards.
According to Rousounides, anything other than modernizing the ATA mechanism is outside the sphere of discussion for employers. He emphasized that employers do not object to the last three points in the government's framework but consider universal coverage a non-negotiable point.
As the discussions continue, both sides are expected to work towards a resolution that addresses the concerns of all parties involved, aiming to provide relief to workers and maintain the competitiveness of the Cypriot economy.
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