Labor peace is facing serious risks, adding another challenge to the economy’s path, particularly concerning negotiations for the renewal of sectoral agreements in the construction industry and pending labor issues in the energy sector.
Trade unions in the energy sector have already been authorized by their members to take action if necessary.
Meanwhile, other unions have requested the Ministry of Labor’s mediation service regarding the renewal of the collective agreement in the construction industry, affecting 40,000 employees, to officially declare an impasse.
Regarding the situation in the energy sector, union members have begun authorizing actions through secret voting conducted at the provincial level to address both labor issues, primarily concerning downsizing, as well as political matters related to energy issues such as the upgrade of the Dhekelia power plant, further renewable energy production and supply possibilities, and energy storage.
Votes, currently with over 90% in favor of authorizing unions for dialogue and strike actions, began on Monday and are set to continue into the coming week.
According to SEPAIK President Sotiris Savvas, the entire process is expected to conclude by next Monday. He further stated that based on current results, support from staff towards unions for handling these issues is considered a given.
Asked whether we should expect strike actions in the energy sector, he responded that the primary goal is to exhaust dialogue with the Ministry of Energy and other involved ministries, but this should be done within a short timeframe.
In parallel, tensions are emerging over the construction sector, with construction trade unions pressuring either for an impasse declaration or for the Labor Minister’s immediate involvement in resolving existing disputes that have so far prevented the renewal of the sectoral agreement.
Within this context, as reported yesterday by “Ergatiko Vima,” the newspaper published by PEO, SEK and PEO unions have requested, through a letter last week, the declaration of an impasse in negotiations that have been ongoing for some time, as they believe further dialogue opportunities have been exhausted.
In the same letter, the unions expressed their dissatisfaction with the delay in renewing the agreement, which expired in May 2022, stating that they will pursue their demands until the end.
The impasse in the construction industry was also highlighted yesterday by “Ergatiki Foni,” the expressive organ of SEK, denouncing the uncompromising stance of the employers, which it claims led to this negative development.
SEK further believes that it is now the time for the Minister of Labor and Social Insurance, Yiannis Panayiotou, to take action to break the deadlock, stating that the agreement to renew the collective agreement in the construction sector is a precursor to labor peace and maintaining stability in labor relations in our country.
They argue that any positive or negative development in this sector will have corresponding implications in the rest of the labor market.
The contract in the hotel industry, another major sectoral contract in the country, expired at the end of 2023, with negotiations for its renewal already underway.
Furthermore, negotiations are expected to begin within the year for the renewal of the dockworkers’ contract, among others.
One of the biggest obstacles in the construction industry is the demand by trade unions for incorporation into existing legislation that guarantees the basic rights of workers in the sector and the agreed-upon wage levels, with the Federation of Cyprus Building Contractors (OSEOK) rejecting such demands and instead highlighting the urgent issue of labor shortages.
The Minister of Labor, Yiannis Panayiotou, is already aware of the lack of progress in negotiations in the construction industry.
According to information acquired by Phileleftheros, he is ready to intervene to prevent mobilizations in the sector.
His initial intervention may involve separate meetings with unions and OSEOK, with the possibility of initiating his mediation through a joint meeting.
However, as of yesterday afternoon, no appointments had been scheduled.
