Hope for hotel labour peace as employers accept proposal

Employers have agreed to a labour ministry proposal in the ongoing negotiation for the renewal of collective agreements in the hotel industry, Labour Minister Yiannis Panayiotou said on Monday.

He told CyBC radio that head of the hoteliers association Pasyxe, Filokypros Roussounidis said the decision was taken on Saturday at an extraordinary general meeting of the association, although it was margional.

President of the Association of Cyprus Tourist Enterprises (Stek) Akis Vavlitis said that despite the proposal being to the benefit of the trade union side, his association also accepted it.

“The issue is for the tourism industry to continue calmly to contribute to the country’s economy,” Vavlitis told CyBC.

He expressed hope the unions would respond positively to the labour minister’s proposal, warning that otherwise, the sector would be led into uncharted waters.

He said Stek is not willing to engage in a further negotiations.

Panayiotou said the proposal was fair and balanced, and he too said he hopes for a positive response from the unions by the end of Monday.

The unions are due to meet within the day to decide on the proposal.

The proposal provides for the immediate payment of a two per cent increase and additional benefits from April 2025, which brings the increase to 3.25 per cent. By 2027, the increase will cumulatively amount to seven per cent.

The minister said the proposal also provides for the guarantee of the 13th salary, which is currently not enjoyed by about ten thousand workers in the hotel industry.

He also said those on the minimum wage are set for a further 3.5 per cent increase. He said that in combination with the 7.2 per cent already given, in less than two years people in the sector who are not covered by a collective agreement will receive a total increase of 10.7 per cent.