Cyprus’ major trade unions—SEK, PEO, PASYDY, and DEOK—are preparing to convene a National Trade Union Assembly to reassess the ongoing developments concerning the Cost of Living Allowance (ATA), particularly following recent comments made by President Nikos Christodoulides at PASYDY’s annual conference.

As Brief reports, the unions seek to strengthen their collective negotiating position in the context of the ongoing social dialogue on ATA.

At the PASYDY event, the President addressed the issue at length, using the opportunity to signal the government's intentions in front of key social partners—a gesture notably absent at the Employers and Industrialists Federation (OEB) General Assembly the following day.

Christodoulides stated that ATA should be distributed in a "fairer" manner, but did not clarify what such a reallocation would entail.

The President’s remarks appear to confirm, albeit indirectly, ongoing reports that the government’s idea of "modernizing ATA" involves the introduction of a tiered adjustment system in the public sector, based on employee salary levels.

According to reports, the Ministry of Finance—which effectively represents the state as employer—is considering paying 100% of ATA to low-income public and broader public sector employees, with a reduced, tiered rate for higher-income earners.

In light of this and given that Labour Minister Yannis Panayiotou, who is leading the social dialogue, has not clarified the President's statements, the major unions are moving forward with the National Trade Union Assembly to further coordinate their position.

At the previous assembly in late March, the unions unanimously reaffirmed that ATA should return to its original philosophy: full payment at 100%. The upcoming meeting is expected to send a stronger message to both employers and the government.

There was an expectation, voiced at the OEB General Assembly, that the President would also send a similar message to the business community.

Speaking at the OEB assembly, outgoing OEB President Antonis Antoniou stated that ATA is a system in need of improvement, as it can fuel inflation and widen the wage gap between high- and low-income workers.

He reiterated the employers’ longstanding position that ATA disproportionately affects production and supply costs compared to demand, ultimately undermining the competitiveness of certain businesses and harming the broader economy.

According to information obtained by Brief, Minister Panayiotou held a preliminary meeting with the leadership of the four major unions last Friday. However, the meeting produced no concrete developments.

The unions clearly stated that ATA is a contractual right for all employees covered by collective agreements, whether in the public or private sector.

They reiterated that there can be no compromise on what they termed the "sacred and hard-earned right" of ATA.

They stressed that the core philosophy of ATA must not change and should not be linked to productivity metrics. Its sole purpose, they emphasized, is to preserve the purchasing power of wages.

The unions further warned that references to "modernization" or "fairer distribution" may conceal intentions to alter or abolish the system.

The Labour Minister did not disclose any details regarding the government’s or Finance Ministry’s specific positions, stating only that his separate meetings with the two social partners are aimed at identifying their respective red lines.

He is expected to meet with the two main employer organizations, OEB and the Cyprus Chamber of Commerce and Industry (KEVE), in the coming days.