After nine months of continuous negotiations, the contentious issue of the Cost of Living Allowance (ATA) was resolved this morning at the office of President Nikos Christodoulides. The breakthrough came following a meeting between the President and the heads of the trade unions SEK, PEO, PASYDY, and DEOK, who had requested clarifications on the final draft of the Framework Agreement in a letter sent yesterday.

Government Spokesperson Konstantinos Letymbiotis confirmed the meeting between the President and the trade union leaders, noting that following this morning’s discussion, a formal meeting will take place at 2:00 PM at the Presidential Palace for the signing of the preliminary ATA agreement by the social partners.

During the meeting, President Christodoulides was accompanied by Finance Minister Makis Keravnos and Labour Minister Yiannis Panayiotou. Also present were the Deputy Minister to the President and the Government Spokesperson.

It is noted that, upon his return to Cyprus, one of the President’s first actions early this morning was to settle the ATA issue.

The two contentious provisions within the Framework Agreement have reportedly been resolved, with both sides accepting some linguistic adjustments.

The first change concerns the implementation of ATA on the National Minimum Wage — it will now be applied every two years, in conjunction with the relevant decree on wage revisions, instead of annually as initially proposed.

The second change relates to the controversial clause calling on the employer side to “authorise the Ministers of Finance and Labour to implement measures for expanding ATA to more beneficiaries.” The word “measures” has now been replaced with new wording that stipulates any potential expansion of ATA must result from mutual agreement between employers and trade unions.

Trade unions reportedly disagree with the first change, insisting that ATA should be incorporated into the National Minimum Wage annually, not every two years. However, they accepted the revised second clause concerning the process for expanding ATA coverage.

According to information obtained by Brief, President Christodoulides had been working behind the scenes even while in Athens, holding telephone discussions with union leaders ahead of today’s decisive meeting.

The Cyprus Chamber of Commerce and Industry (CCCI) had already announced its acceptance of the revised framework earlier this week. In contrast, the Employers and Industrialists Federation (OEB) had maintained a wait-and-see stance until this morning, pending the outcome of the President’s discussions with the unions.