The European Parliament directive concerning the expansion of free collective bargaining and adequate wages in the private sector is expected to be discussed at the inaugural meeting of the technical committee of the Ministry of Labour, which was established specifically to advance the relevant bill to the House of Representatives.

The technical committee, which will convene next Monday under the chairmanship of Antis Apostolou, Director of the Department of Labour Relations at the Ministry of Labour, includes the leadership of employers’ organisations OEB and CCCI, as well as the respective trade unions SEK, PEO and DEOK.

According to information obtained by Brief, the meeting will include a presentation of the draft bill prepared by the Ministry of Labour, which fully falls within the provisions of the directive issued by the European Union to all member states.

The bill refers, among other matters, to the adequacy of minimum wages and the improvement of living and working conditions, particularly the adequacy of minimum wages for employees. As noted, its objective is to contribute to upward social convergence, with the aim of reducing wage inequality.

In addition, the draft bill includes provisions promoting collective bargaining as a means of wage determination—an issue that has been a key demand of the trade union movement for the past three years.

The relevant European Parliament directive was issued on 19 October 2022. The Republic of Cyprus should have initiated the social dialogue for the preparation of the bill, for harmonisation purposes, from early 2023.

Beyond the above, the bill also provides for the establishment of a mechanism for the adjustment of the statutory minimum wage, with the aim of ensuring a decent standard of living, reducing in-work poverty, promoting social cohesion and upward social convergence, and narrowing the gender pay gap.

Members of the Minimum Wage Adjustment Committee will be appointed by the Council of Ministers.

Under the bill, the Committee will consist of three representatives of employees, three representatives of employers, and three independent academics or recognised experts specialising in labour relations.

One of the three independent members will be appointed by the Council of Ministers as Chair of the Committee.

According to the EU directive, in cases where the percentage of employees covered by collective bargaining agreements is found to fall below the minimum threshold of 80%, the competent authority is required to:

• Establish a framework with the necessary appropriate conditions for collective bargaining, in accordance with national law or practice, either through legislation following consultation with the social partners or through agreement with them

• Promote the development and strengthening of the capacity of social partners to participate in collective bargaining for wage determination, particularly at sectoral and cross-sectoral levels

• Encourage constructive, meaningful and well-informed wage negotiations between the social partners

• Take measures, where necessary, to protect the exercise of the right to collective bargaining for wage determination, and to safeguard employees and trade union representatives against discriminatory acts affecting their employment

• Require the Ministry of Labour, following consultation with the social partners, to draw up an action plan for the promotion of collective bargaining, setting out a clear timetable and specific measures for the gradual increase of collective bargaining coverage