Shortages in the workforce and labor issues were discussed by the Cyprus Chamber of Commerce and Industry (KEBE) and the Ministry of Labor.

Workforce shortages, the employment strategy for nationals from third countries, the extension of contracts, the national minimum wage, the regulation of strikes in essential services, and other labor issues were the main topics of discussion between the Minister of Labor and Social Insurance, Yiannis Panayiotou, and members of the Board of Directors of the Cyprus Chamber of Commerce and Industry (KEBE) during a meeting held at KEBE on Tuesday afternoon.

In a statement by KEBE, it was noted that serious labor shortages in Cyprus and the employment strategy for third-country nationals were extensively discussed. "KEBE supports the continuation of the policy to grant employment permits to workers from third countries where there is proven lack of interest from Cypriots or Europeans," the statement said.

Additionally, it was highlighted that KEBE emphasized its request to increase the deduction for accommodation costs provided by the employer from 10% to 25% of the employee's salary, as per the commitment of the President of the Republic, according to KEBE. At the same time, KEBE requested that students be allowed to work without restrictions in all professions, as is the case in other European countries.

KEBE also expressed its disagreement with the proposal to extend collective agreements to cover 80% of businesses. KEBE's position is that such an extension is not mandated by the European Union directive, which encourages collective bargaining but does not call for the expansion of collective agreements.

The statement also mentioned that KEBE reiterated its long-standing position on the need for legislative regulation of strikes in essential services, stating that only through such measures will everyone comply and respect labor regulations, preventing further damage to the economy and the creation of broader societal issues.

Furthermore, the national minimum wage was discussed, with KEBE conveying its disagreement with setting an hourly minimum wage. It was noted that the determination of hourly labor costs should remain as it is today, based on the working hours of each business, as is the case in other EU countries with legally established minimum wages.

Board members also elaborated on KEBE's position regarding the replacement of the current method of calculating the Cost of Living Allowance (COLA), for businesses that provide it, with a new, modern system that takes into account indicators such as productivity, work efficiency, and GDP growth in constant prices. KEBE also requested compensatory measures for businesses from the Minister of Labor and Social Insurance.

Finally, the statement mentioned discussions on the Minister’s proposal to abolish the 12% reduction in basic pensions and the legislative regulation of remote work.

The Minister of Labor and Social Insurance answered questions from the Board members and assured them that the constructive and close cooperation with KEBE would continue and be strengthened.