Employers’ and trade union leaderships are heading today to Labour Minister Y. Panayiotou’s office with reduced expectations to tackle the thorny issue of the Cost of Living Allowance (ATA).

As Brief reports, this marks the first joint meeting of the social partners since the Labour Ministry announced the launch of an intensive social dialogue, which is expected to conclude by the end of July, or at the latest by early August.

Both employers and trade unions remain highly cautious, describing the prospects of reaching a golden compromise on such a critical issue as extremely dim.

Positions between the two sides remain diametrically opposed.

The trade union movement is demanding the full reinstatement of ATA at 100%, in line with what they claim is provided by the transitional agreement of 2023.

On the other hand, the employers categorically reject this position, arguing that the ATA system fundamentally undermines business competitiveness.

Sources from within the employers' camp report that the joint statement by OEB and CCCI is expected to be set aside at today’s meeting, purely for procedural reasons.

In their joint announcement, the two employers’ organisations had pointed out to Y. Panayiotou that the declaration embargo he requested applies to and binds all parties of the tripartite cooperation.

The organisations also noted the Minister’s comments on extending ATA to the private sector, clarifying: “The allowance is payable exclusively to those who have agreed to receive it through individual or collective labour agreements,” stated OEB and CCCI.