Amid ongoing tension in labor relations due to the apparent deadlock in the social dialogue over the Cost of Living Allowance (CoLA), another crisis remains unresolved and threatens industrial peace in the hotel sector.

The trade unions insist on expanding and applying the collective agreement to all hotels, including those where staff have traditionally not been unionized and, consequently, do not implement collective agreements.

This mostly concerns small hotel units, most of which operate seasonally, from April to October.

Additionally, the labor side claims that some hoteliers selectively apply the collective agreement, while others do not apply it at all, even though they are members of one or the other professional association.

This labor dispute also remains pending before the Minister of Labour. A series of mediation meetings have taken place with both sides, without any resolution.

Each side stands firm in its position, with employers citing a specific article of the European acquis, which they argue prohibits any authority from forcing an employer to unionize or not unionize their staff.

Yesterday, the relevant bodies of SEK’s Hotel Employees Federation convened, and today, Tuesday, their counterparts from PEO will meet, while DEOK's professional bodies have already reached clear decisions. According to Brief’s sources, the joint response of the three unions will be a warning announcement regarding potential strike action.

The unions have already conveyed their intentions to the Ministry of Labour during meetings attended by the General Secretaries of PEO, SEK, and the President of DEOK.

The trade union movement has called on the Minister to intervene and urge the two hotelier associations, PASYXE and STEK, to ask their members to implement the provisions of the collective agreements signed under the Ministry’s mediation.

The Minister was also asked to clarify to whom the collective agreement, signed on December 5, 2024, applies. The agreement includes two documents: a memorandum of understanding for the renewal of the sectoral agreement and clarifications on the memorandum. The unions argue that both documents apply to all workers in the hotel industry, whether unionized or not.

Hoteliers’ Interpretation

Hoteliers, and, by extension, the employers, argue that this issue is not exclusive to the hotel industry but affects other sectors as well, which are also being asked to abide by collective agreement provisions.

They note that neither national legislation nor EU law provides for such obligations.

They also argue that many small hotel units with limited staff cannot afford the labor costs imposed by the collective agreements.

Many hoteliers question whether the union movement will paralyze the hotel industry so easily during peak tourist season, without weighing the negative consequences. Furthermore, what will happen to the many hotels that are fully complying with the agreements?

Parliament Approves Regulations Covered by the Agreement

Last week, Parliament unanimously approved regulations governing the working conditions set out in the collective agreement to ensure that essential provisions are not undermined.

The regulations include the provision of a 13th salary and an increased holiday pay rate of 2:1 for staff working on public holidays during Christmas, New Year, and Easter.

They also include an increase in the employer’s contribution to the provident fund by 0.50% from 1/1/2026 and a further 0.50% from 1/1/2027.

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