11.07.2024
Unions SEK, PEO and DEOK are pushing for wage regulations for new entrants into the construction industry to effectively combat illegal and undeclared work. According to them, the proposal of the Minister of Labor and Social Security Yiannis Panayiotou , presented at the meeting with social partners, does not satisfy this requirement.
On the other hand, the Federation of Associations of Building Contractors of Cyprus (OSEOK) states that the framework set by the Minister is very favorable for workers as it gives them more than they asked for, except for the issue of legislative regulation.
General Secretary of the construction trade union PEO , Michalis Papanikolaou , said that unions have asked the ministry to help stop violations of labor agreements and contracts . He noted that during the meeting the minister presented data that proves that the salaries declared to the Social Security Service are lower than the minimum wage specified in the construction workers’ contract and many times lower than the national minimum wage.
Trade unions propose the introduction of legislative regulation of wages in the construction industry, similar to previously introduced social benefits. As the minister’s proposal does not take this into account, unions plan to discuss further action next week, likely proposing more drastic measures.
Papanicolaou stressed that the lack of legal regulation allows employers to break agreements without consequences. He also noted that trade unions are demanding the restoration of conditions reduced since 2012.
OOOIMSEK-SEK General Secretary , Stelios Tsiaputis , said that the 25-month discussion on the issue of legislating minimum wages had not satisfied the unions. The minister promised to provide a written proposal next week, but it has not yet satisfied the unions.
The Labor Minister said there are tools to check for violations, but unions believe that without legal minimum wages this will not solve the problem. He added that the law would entail penalties for those who fail to comply with the convention, either fine or imprisonment or both, and the penalties should be dissuasive.
In turn, the secretary of DEE builders DEOK Stelios Efstratiou said that the structure presented by the minister does not contain specific figures. “As a framework it sounds good, but it’s missing something,” he said, referring to the legislation’s inclusion of wage guarantees for new entrants into the construction industry.
On the employers’ side, OSEOK President Stelios Gabriel noted that the concept presented by the minister satisfies all the demands of the trade unions and even more. However, some issues important to employers, such as modernizing the collective agreement, were not included.
Stelios Gabriel added that the goal is to combat unfair competition and illegal undeclared employment He emphasized that legislative regulation is a separate issue and proposed alternative measures, such as the introduction of personal cards for employees.
