29.07.2024
Cyprus’s Minister of Labour and Social Insurance, Yiannis Panayiotou, announced the extension of the collective agreement in the construction industry until the end of 2027. The decision was reached with the consensus of all social partners in the sector, including the PEO, SEK, and DEOK unions, as well as the employers’ federation OSEOK, who accepted the minister’s mediation proposal. Panayiotou noted that achieving this agreement is a collective success of tripartite social cooperation, serving the public interest and benefiting all parties involved.
The mediation proposal was submitted by the Minister of Labour on July 19. In today’s written statement, Yiannis Panayiotou stated that the councils of the PEO, SEK, and DEOK builders’ unions, as well as the Central Council of the Federation of Cyprus Building Contractors Associations (OSEOK), have formally informed him of their acceptance of the Ministry of Labour and Social Insurance’s mediation proposal to extend the “Sectoral Collective Agreement for the Construction Industry” until the end of 2027.
Yiannis Panayiotou emphasized that ensuring labor peace in the construction industry for the coming years is an important condition for the development of Cyprus’s economy. In a context of external instability, particularly in this region, it is crucial to maintain stability within the country, and the achieved agreement contributes to this.
The agreement includes the restoration of wage levels that were reduced in the previous decade, as well as planned increases in wages and social benefits in the coming years. Measures are also planned to bring actual wages closer to agreed levels and to combat illegal and undeclared work.
The Minister of Labour thanked the leaders and representatives of the unions and employers for their constructive cooperation, highlighting its importance for implementing the terms of the agreement, which will improve labor relations and the overall functioning of the construction industry. The signing of the agreement is scheduled for July 31, 2024, at the Ministry of Labour and Social Insurance.
