Urgent Need for Staff in Cyprus' Retail Sector

Urgent Need for Staff in Cyprus' Retail Sector

The Cyprus Retail Association Appeals for Streamlined Processes and Urgent Attention to Staffing Shortages in Retail and Hospitality Sectors

The Cyprus Retail Association will send a letter to the Minister of Labor, Yiannis Panagiotou, outlining the urgent need for staff across various sectors. This letter, signed by the Association's General Secretary, Marios Antoniou, emphasizes the growing challenges in hiring staff, particularly from third countries.

In a statement to Brief, Mr. Antoniou highlighted that staff shortages are currently the biggest headache for businesses, warning that the problem is escalating daily. He expressed disappointment with the Labor Ministry and the government's failure to simplify and expedite the process of handling applications, despite their promises. "Reducing the processing time for hiring staff from third countries from one year or six months to three months is not enough," Antoniou explained. "The hiring process doesn't stop with obtaining a permit from the Ministry. After approval, there are contracts to sign, visa applications to submit, and approvals to wait for."

Antoniou reiterated the enormity of the staffing crisis and the need for immediate resolution. He mentioned the unfulfilled promise of electronic application submissions and the looming tourist season, which is expected to exacerbate the problem. "Next month, the problem will intensify, especially with several hospitality businesses and hotels currently closed," he added.

We’ve reached a point where we’re begging for staff in order to be able to do our job

According to Antoniou, businesses require staff to operate efficiently, and the entire economy suffers without adequate staffing. He questioned why unemployed Cypriots or EU nationals are not being directed to businesses in need. He also addressed the common belief that low wages are the reason for staffing shortages, noting that there are very few formal complaints in this regard.

"The issue of staff shortage is not unique to Cyprus; it's a European and global problem. Many countries have made significant moves to attract staff from third countries by simplifying procedures. We remain stagnant, letting the problem grow. We don't understand or accept this," Antoniou stressed. He urged for actions against employers who violate laws or collective agreements but emphasized that not all businesses and employers should be penalized for the actions of a few.

"We're not asking for subsidies or grants. We just need staff to operate our businesses. We've reached a point where we're begging for staff to do our job," Antoniou pointed out.

When asked about the retail sector's staffing needs, Antoniou referred to the latest official statistics from the Statistical Service, estimating a need for 2,500 to 3,000 staff. He also mentioned that two new shopping centers are in the process of securing relevant permits, which could add a need for 2,000 additional staff.

Regarding the Labor Ministry's data on staffing needs for 2024, Antoniou said that CYRA will request detailed information on sector-specific staffing needs and the employment of staff from third countries in each sector.

Finally, Antoniou emphasized the need for improvements to the existing framework implemented last February. "We need timely responses, as defined in the Strategy, to operate effectively. We need staff to work," he concluded.

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