The decision will affect just under 200 thousand workers, about one in two
On Friday, April 28, the mediating proposal submitted by the Government to the social partners was presented.
By Panagiotis Rougalas
Today, Wednesday, May 3, the employers will have a meeting on the Automatic Price Index Adjustment (ATA) and on Thursday, May 4, the trade unions will have one. White smoke for the mediation proposal presented by the Minister of Labor and Social Insurance Yiannis Panagiotou on Friday, April 28 to the social partners has still not come out. Both employers and unions see areas that could be improved in the minister's compromise proposal for ATA. The decision will affect just under 200 thousand workers in Cyprus, i.e. approximately one in two. Specifically, the beneficiaries of ATA are employees in the public and broader public sector (semi-public) and local government employees. Beneficiaries are also large sectors in the private sector such as construction and hotels and wherever else there are collective agreements, such as, for example, banks.
On Tuesday, May 2, during the meeting of the trade unions, a new all-union meeting was decided on Thursday, May 4, to inform the organizations of the public sector, SEK, PEO, DEOK and PASYDY. The fermentations will continue so that the unions can give Mr. Panagiotou their final position on the proposal they have in hand, on Friday, May 5, at the joint session at the Ministry of Labour. Accordingly, the employers will also consider the mediation proposal of Mr. Panagiotou in order to give their final position. As they stated since last Friday, although they are against the nature of ATA, they will consider the minister's proposals with care and respect. The trade unions want to find a permanent acceptable arrangement, while the employers want a different solution, outside the framework of the ATA, since they have repeatedly emphasized that it is an outdated institution. However, the hope that efforts will be made by the interested members with a positive attitude to reach an agreement on the ATA, has been expressed by the Minister of Labor in his statements to the media since Friday, April 28. The permanent position of the Minister of Labor is to renew the agreement, to preserve labor peace and to implement the proposal based on the possibilities of public finances. Consumer and this number of well-off things will rise to 66.7%.
ATA is granted so far at 50% of the annual increase in the Consumer Price Index, as long as positive growth rates of the economy are recorded in the second and third quarters of the previous year. The ATA is given to cover the annual loss of purchasing power that consumers accept due to the price increases brought by inflation.
On Friday, April 28, the mediation proposal submitted by the Government to the social partners was presented. The compromise proposal of Friday, April 28 presented by the minister is based on 4 points. Firstly, the renewal of the interim agreement of 2017 for a period of three years, secondly, the increase of the ATA payment rate to two-thirds of the Consumer Price Index instead of the 50% that applies today (66.7% that is) and the 0% that applied previously, thirdly, the immediate payment of increases to workers from 1 June in line with 2022 inflation and fourthly, the development of structured social dialogue for a comprehensive agreement by 2025 with permanency.