The Minister of Labor will be called upon to make critical decisions next week, which could shape the future course of labor peace in the hotel industry.

As labor relations in the hotel sector continue to deteriorate, the situation is growing increasingly tense. Trade unions are warning of potential measures if the Ministry of Labor does not address what they describe as “repeated violations by certain hoteliers of existing collective agreements and the uncontrolled employment of third-country workers.”

These two pressing issues were raised last Thursday by the leadership of the three trade unions — SEK, PEO, and DEOK — during a meeting with Minister of Labor, G. Panayiotou.

According to information obtained by Brief, the union movement urged the Minister to intervene and instruct the two hotelier associations, PASYXE and STEK, to uphold the provisions of the collective agreements they signed with the mediation of the Ministry of Labor.

“Trade unions presented the Minister with concrete evidence showing beyond any doubt that certain hoteliers continue to undermine collective agreements,” senior union officials told Brief.

According to the unions, these violations are primarily committed by hoteliers whose staff are not unionized.

They warn that if what they call the deregulation of labor relations continues, all stakeholders should consider it a given that the reaction will be forceful — even in the middle of the tourist season.

The unions also claim that there are hoteliers who, while maintaining a collective agreement for their staff, still violate key provisions of the agreements.

On the other hand, there are hotel units — especially those belonging to larger groups — that fully comply with the collective agreements.

The unions have asked the Minister to clearly state who the collective agreement, concluded on December 5, 2024, actually applies to.

It is noted that the collective agreement consists of two documents: one concerning the memorandum of agreement for the renewal of the sectoral agreement, and the other providing clarifications on the memorandum.

According to the unions, these two documents apply to all workers in the hotel industry, whether unionized or not.

Hoteliers interpret the agreements quite differently. They argue that only hotels whose staff are covered by collective agreements are obligated to comply with their provisions.

Furthermore, the employers’ side believes that the collective agreement is not mandatory for the entire sector. There are smaller hotel units with limited staff that cannot sustain the labor costs set by the collective agreements.

The Minister of Labor is expected to meet early next week with the leadership of the two hotelier associations, PASYXE and STEK, to gain a comprehensive picture of the problem. He will then meet again with the unions on Thursday.

It remains unclear whether the Minister will convene a joint meeting, submit a proposal, or proceed with making a decision.