A tight timeline has been agreed between social partners for concluding the ongoing social dialogue concerning the Cost of Living Allowance (ATA).

During a joint meeting yesterday with employers’ and trade union organizations at his office, the Minister of Labour, George Panayiotou, proposed initiating continuous negotiations starting next Tuesday. The goal is to reach a compromise on the contentious ATA issue.

Although a definitive deadline for concluding the dialogue has not been officially set, the leadership of the trade unions—SEK, PEO, PASYDY, and DEOK—emphasized to the Minister that a conclusion must be reached within the next two weeks.

The Minister hinted that the dialogue could be extended until the end of July if necessary, to safeguard industrial peace.

However, the unions stated that if no consensus emerges, the Minister will be left with no option but to declare a deadlock. They also reminded him that the transitional agreement on ATA, reached in April 2023, had set a June 2025 deadline for a final resolution.

According to Brief sources, both the employers’ and the trade unions' organizations reiterated their long-standing and well-known positions on the ATA system. These positions, presented both at the negotiation table and in public, offer little hope for a resolution.

This has led the Minister to seek behind-the-scenes signals during his mediating meetings with the parties. These informal indications may help shape a final proposal that could bridge the gap.

The trade union movement unanimously reiterated its demand for the full restoration of ATA to 100%, while the employers’ organizations once again insisted on reforming the system's underlying formula.

As previously reported by Brief, the leadership of SEK, PEO, PASYDY, and DEOK publicly warned in recent days that if the Minister deviates from the framework of the transitional ATA agreement, "the likelihood of forceful mobilizations becomes very real."

The prospect of a General Trade Union Meeting remains active. Following yesterday's session at the Ministry of Labour, the trade unions agreed to convene on July 7.

At this meeting, the leadership of the four unions involved in the ATA dialogue will brief the wider union membership on the progress of negotiations and reaffirm their demand for the full reinstatement of ATA at 100%.

Currently, ATA is being paid at 66.7%.