Trade unions in Cyprus are expressing strong criticism toward the Ministry of Labour for its inaction in submitting a bill to Parliament that would outline a strategy for expanding collective agreements and initiating a corresponding social dialogue. According to union leaders, this delay hinders the implementation of the EU directive requiring the extension of collective agreements to cover at least 80% of workers in the private sector.

Andreas Matsas, Secretary-General of SEK, told Brief that "the Ministry's reluctance to initiate social dialogue on the EU directive and subsequently submit a bill to Parliament raises legitimate concerns." He also emphasized the government's political commitment to expanding the coverage of collective agreements.

The issue was raised last Tuesday in the Parliamentary Committee on Labour, where an extensive discussion took place regarding the need for the government to take action in implementing collective bargaining frameworks more broadly within the private sector.

At the same time, the European Court of Justice is reviewing a joint appeal by Denmark and Sweden against the 2022 EU directive. As Brief first reported in May, the appeal challenges the directive’s validity, arguing it interferes with each country's sovereignty in setting wage frameworks.

Cypriot Advocate General at the European Court, Nikos Aimiliou, issued a preliminary opinion siding with the appeal, supporting the view that the directive represents undue interference in national wage-setting mechanisms.

The Pancyprian Federation of Labour (PEO), through its Secretary-General Sotiroula Charalambous, has submitted specific proposals to the Parliamentary Labour Committee. She stated that these proposals could be implemented even beyond what is required for harmonization with the EU directive.

Among PEO’s key proposals:

• Mandatory implementation of collective agreements by employers

• Linking public works contracts to companies' adherence to collective bargaining

• Conditioning work permits for third-country nationals on compliance with collective agreements

• Tying government incentives and support measures to the promotion of collective bargaining

Lena Panayiotou, Director of Labour Relations at the Employers and Industrialists Federation (OEB), emphasized that Cyprus’s current labour relations framework has historically served the country well, especially during economic crises, due to its inherent flexibility.

Panayiotou noted that the system is built on voluntary participation, tripartite cooperation, social dialogue, and free collective bargaining. She cited the Industrial Relations Code and the 2012 law recognizing trade union organizations as core components of a comprehensive and effective framework.

OEB rejects any effort to alter this model, arguing that the EU directive does not explicitly mandate extending collective agreements but merely requires the drafting of an action plan to support collective bargaining.