THE government and public sector unions yesterday held the first meeting over the reform of the cost of living allowance (CoLA) system to make it fairer.Reforming CoLA is a pledge made by Cyprus to the European Union and the aim is to reach an agreement by the end of the first half of the year.Union leaders met with the ministers of finance and labour for some 40 minutes yesterday but no public statements were made afterwards.The ministers will be meeting employers next... 2 comments

BIG BUSINESS around the world is looking to use the global economic crisis to take away workers rights fought for and won in the last century, according to President Demetris Christofias. ... 6 comments

 PRESIDENT Demetris Christofias passed on a pledge to public servants yesterday that the government would not touch their 13th salaries following outrage by unions on Wednesday when Finance Minister Vassos Shiraly declined to either confirm or deny that such a move was in the works.The news was welcomed yesterday by public servants union PASYDY, which has remained adamant throughout the implementation of austerity measures that the solution does not lie in cutbacks to the public payroll despite suggestions to the contrary by the EU and the IMF. While civil servants are now guaranteed to keep their 13th salaries, many workers in the private sector have had to do without theirs as their employers cannot afford to pay up. ... 20 comments

THE GOVERNMENT this week acknowledged what had been obvious to anyone with a basic understanding of how the economy works from the day the 2012 budget was first presented. That there was no way the budget deficit target of 2.5 per cent of GDP would be met, in a contracting economy with very tight credit because state revenue would fall significantly.When this was pointed out to the former finance minister Kikis Kazamias he said that his ministry’s technocrats had taken into account the expected decline in business activity and adjusted state revenue forecasts accordingly. The technocrats obviously miscalculated the tax revenue flow, because Kazamias’ successor, Vassos Shiarly, has already mentioned the need for additional spending cuts by the government... 6 comments

THIS GOVERMENT never ceases to amaze with its antiquated reform proposals. Its bill on the trade unions, which has been circulating since 2009 and was discussed at a House committee on Monday, sets a membership minimum of 100, as requirement for a group of workers to be able to be registered by the state as a union. At present, the minimum number required is 20... 4 comments

 A BILL increasing the minimum number of members to create a union from 20 to 100, as well as an increase in registration fees, was yesterday submitted to parliament by the labour ministry.The chairman of the House labour committee, AKEL’s Andreas Fakontis, said the increase of union members was proposed for two main reasons... Read on

CIVIL Engineers yesterday asked the employees of Vassilikos Cement to resume work and resolve their differences before the construction industry was completely destroyed.Employees at the cement factory went on indefinite strike over their collective agreements on March 1. A few days later concrete makers said they were halting work because they had no cement left.“Construction sites are idle and works are postponed creating a chain reaction of negative consequences financially and time-wise on the construction and building sectors,” the Cyprus civil engineers’ association said yesterday in an announcement... 6 comments

UNEMPLOYMENT rose for the seventh consecutive month in February and the trend is set to continue regardless of the measures to bolster employment, being taken by the labour ministry. The country remains deep in recession, bank credit has never been tighter not to mention the high interest rates while more companies are being forced to close down or suspend operations. ... 5 comments

THE DISPUTE over the shop opening hours, which had been forgotten for the last couple years, is back on the public agenda. It was re-kindled by a call by the Chamber of Commerce and the Employers Federation for the liberalisation of opening hours on the grounds that this would help stimulate business activity and create jobs.Inevitably, the association of owners of small shops POVEK, which has traditionally supported regulation of opening hours, immediately responded. Its representatives argued liberalisation would constitute the final blow to small-to-medium businesses. Liberalisation would increase unemployment as it would add the owners of small shops to the ranks of the unemployed, a POVEK announcement said... 12 comments