CYPRUS: Hoteliers waver over last-ditch pay deal to avert strike

Cyprus hotels appear to be back-tracking over a last-minute compromise proposal tabled by the Minister of Labour to avert strike action in the tourism sector.

Hoteliers and unions had reportedly come to a last-ditch pay deal after a record 34-hour negotiations navigated by Labour Minister Zeta Emilianidou.

However, according to sources quoted  by Stockwatch, Cyprus hoteliers are sceptical over Minister Zeta Emilianidou's proposal as they fear labour costs will skyrocket.

According to the report, hoteliers are worried pericularly over a 1% contribution to employees provident funds which will expand to cover workers who are not unionised.

The contribution for non-union personnel is equally shared between a provident fund run by the unions and a fund managed by hotels.

Hoteliers insist that contributions for workers hired on personal contracts should flow into the fund managed by hotels on behalf of their employees, and not the unions as they do  not represent these staff members.

According to the proposal tabled by Emilianidou, a cabinet  decree is to regulate wages and wage increases irrelevant to the status an employee is hired.

This would mean that students hired during the peak summer season being eligible to the same rights and wages permanent staff receive.

Hoteliers feat that if the proposal is adopted then they will see total labour costs rise by 10-15%, as most hotels rely on students to cover their needs during the summer months, who until now were covered by a separate trainee framework.

Under the decree, hoteliers would also have to provide accommodation and food for students working for them.

The minister's proposal will also see hotel employees' wages rise by 5.5% over the next four years.

The Cyprus Hoteliers Association is to hold a general assembly on Wednesday to vote on the proposal.

Unions have already accepted the proposal, pending the final approval of regional branches.