Three issues fundamental to the trade union movement appear to be getting underway as a result of the meeting held yesterday afternoon between President Christodoulides and the new General Secretariat of SEK.

According to information obtained by INK, the President responded positively regarding linking an hourly rate breakdown to the calculation of the National Minimum Wage (EKM), something the employers' side fiercely opposes, expanding the link between public procurement contracts and the implementation of collective bargaining agreements, and the intention to include the second pension pillar in the first phase of the pension reform.

Regarding linking an hourly rate breakdown to the National Minimum Wage, President Christodoulides expressed the government's intention to satisfy the trade union movement's demand within the framework of the social dialogue that will precede it, as he noted, between the Ministry of Labor (YPERG), employers' organizations, and trade unions at the Labor Advisory Board (ESS).

In his statements on the matter after the conclusion of the meeting, Minister of Labor Marinos Mousiouttas said that there has been a Council of Ministers decision since last December stating that the next decree regarding the minimum wage will also include the issue of the hourly rate calculation.

"If no agreement is reached in the technical committee by the end of 2026 or early 2027," he emphasized, "then we will proceed so that the 2027 decree includes this element as well."

Provident Funds Placed in Phase A of the Pension Reform

The President of the Republic also appears to look favorably upon the inclusion of the second pension pillar, which consists of provident funds, into Phase A of the pension system reform.

Despite expressing certain reservations regarding the reactions of the employers' side, the President viewed favorably the possibility of providing incentives to businesses as a counterweight to accepting the institution of provident funds in the private sector.

SEK General Secretary Andreas Matsas stated in his remarks that there appears to be an intention to include the second pillar in Phase A.

"This is an issue we will discuss extensively in the coming period so that the bill and the proposal to be submitted before Parliament will include it," noted the General Secretary of SEK.

The Minister of Labor noted that when the bill is submitted to Parliament, an agreement on the second pillar will also be in place, "something that is sought primarily by the unions, but by employers as well," he said.

The Linking of Collective Agreements

The Minister of Labor also referred to the issue of linking public procurement contracts with collective labor agreements. As he stated, this is already happening in the construction industry.

"There is already a government decision that this should be expanded to other professions. The intention is to proceed as a government so that it expands to security services and cleaning services."

The Employment Strategy for Workers

Regarding the strategy for employing workers from third countries, the General Secretary of SEK said that the meeting with the President highlighted the need for further management and better regulation to eliminate the unfair competition currently recorded more intensely between businesses that apply collective agreements and those that refuse to do so.

The Minister of Labor also referred to the matter of the bill concerning the adequacy of minimum wages and agreements.

"It is a bill," he said, "whose submission has been delayed."

The problems affecting workers at the Electricity Authority of Cyprus (EAC) were also discussed during the meeting.

Present at the meeting were the Minister of Labor, the Deputy Minister to the President Irene Piki, the Director General of the Ministry of Finance Andreas Zachariades, and the Deputy Government Spokesperson Yiannis Antoniou.

Representing the new leadership of SEK were Mr. Matsas, Deputy General Secretary Panikos Argyrides, General Organizing Secretary Yiannis Tsouris, and General Treasurer Savvas Koulas.

Source: ink.com