Employers’ Front Opens Window of Opportunity on ATA – Government Holds the Key
OEB and CCCI hold a historic joint meeting, criticizing the Labor Minister’s handling of ATA and warning of withdrawal from social dialogue.
Pivotal decisions regarding the future of the social dialogue on the Cost of Living Allowance (ATA) are expected today, as the executive committees of the Employers and Industrialists Federation (OEB) and the Cyprus Chamber of Commerce and Industry (CCCI) convene jointly for the first time in their long history.
This unprecedented joint session aims to send a message of unity and solidarity from the business community—just as the unions have done through the Pan-Union Coordination—on the critical issue of ATA.
At the same time, according to Brief, the two employers’ committees intend to send a strong signal to Minister of Labor Yannis Panayiotou, criticizing his role as mediator in the dispute.
Both organizations argue that the Labor Minister has not managed the ATA issue with full impartiality. They accuse him of a series of missteps, culminating in the controversial “ATA for All” proposal.
The proposal not only strained relations between the Ministry and the employers’ organizations but also triggered opposition from the union movement. Unions argue that the initiative—especially with the prospect of legislating ATA for all without substantive content—poses serious risks to the cohesion of labor relations and the institution of free collective bargaining.
For employers, “ATA for All” is a red line.
A joint communiqué is expected after the meeting, with the employers’ side insisting that the proposal must be withdrawn from the dialogue table. Otherwise, as has been widely discussed, OEB and CCCI may pull out of the social dialogue process altogether.
The two organizations view the proposal as misguided and hold the Labor Minister responsible for the escalation of this labor crisis. They refer to the content of the two transitional ATA agreements reached in 2017 and 2023, emphasizing that “no reference is made to extending ATA across the entire private sector, let alone through legislation.”
The Minister’s attempt to persuade CCCI leadership to present his approach to its internal bodies was firmly rejected. The move was interpreted as bypassing the organization’s leadership, which alone is authorized to negotiate on ATA based on the decisions of all its governing bodies.
