The trade union movement has politely but firmly said “no” to the President’s proposed framework agreement on the Cost of Living Allowance (ATA), despite government expectations of a positive outcome.

Importantly, unions chose not to burn bridges. They did not reject the framework outright but instead decided to seek further clarification from President Nikos Christodoulides once he returns to Cyprus, according to SEK Secretary-General Andreas Matsas, who spoke on behalf of the four trade unions participating in the social dialogue — SEK, PEO, PASYDY, and DEOK.

Matsas made his remarks after a two-hour meeting between the leaderships of the four unions, stressing that “there are issues that require further discussion.” He added that the unions intend to request a meeting with the President of the Republic in the coming days.

“We have serious concerns regarding the revised framework and the new approaches outlined in the document sent to us,” said Matsas.

When asked whether the unions’ disagreement centers on the National Minimum Wage, Matsas avoided a direct response, saying only that “there is concern regarding the elements that have been altered.”

According to information obtained by Brief, unions are raising a matter of principle regarding the integration and payment frequency of the Cost of Living Allowance (ATA) in relation to the Minimum Wage — whether it should be applied annually or biennially.

The unions maintain that there cannot be two categories of workers: those who receive the ATA annually, and those earning the National Minimum Wage (NMW) who would receive it only every two years.

Under the government’s proposed framework, employees whose salaries are set at NMW levels would receive ATA adjustments every two years. It is noted that the Ministry of Labour’s decree on revising the NMW is also issued biennially.

A key point in Matsas’s statements was his reference to a recent European Court ruling concerning the Minimum Wage and the extension of collective agreements to 80% of workers.

He emphasized that this ruling would be closely examined in connection with the EU Directive on Adequate Minimum Wages and the European Minimum Wage, with the goal of managing the issue within a comprehensive policy framework.

When asked whether this ruling would be incorporated into the ATA framework, Matsas replied that the evolving situation would indeed be part of the unions’ upcoming discussion with the President.

Pressed on whether there was unanimity among the unions, the SEK Secretary-General responded simply: “We are all here together.”

Meanwhile, PEO Secretary-General Sotiroula Charalambous made a brief intervention, noting: “The timing is important, but so is the substance of the agreement.”

On the employers’ side, the approach diverged significantly from that of the unions.

The Cyprus Chamber of Commerce and Industry (CCCI/KEVE) was quick to leak that it had accepted the revised ATA framework — a move later confirmed publicly by Philokypros Rousounides in media statements.

While the Employers and Industrialists Federation (OEB) has not made an official announcement, Brief reports indicate that it gave positive signals to President Christodoulides regarding the new framework — hence the government’s optimistic remarks about a “favourable outcome.”

It appears that OEB may have been waiting for the results of the unions’ joint meeting before issuing a statement, adopting what could be described as a “defensive stance.”

OEB Director-General Michalis Antoniou told the media: “Last Monday, the Executive Committee of OEB gave a strong and clear mandate to our President, George Pantelides, for further handling of the matter.”

He added that this mandate “includes acceptance of the framework as it stands.”