The labour crisis in the construction industry deepens with the second mediation proposal put forward by the labour ministry thrown out on Wednesday by the trade unions, while repercussions are expected across the whole sector and the economy in general.

Labour Minister Yiannis Panayiotou was due to meet with the employers and trade unions late on Wednesday to gauge the stance of the two sides on his ministry’s proposal.

The workers in the ready-mix cement sector dismissed the proposal for the renewal of the sectoral collective agreement in local meetings on Tuesday and Wednesday, meaning that they will be pushing on with their strike which began on November 5.

Members of trade unions Sek, Peo and Deok have already notified the ministry that the strike will continue.

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The chamber of commerce (Keve) condemned the unions’ decision, saying the minister’s proposal would have given them a 13 per cent pay increase.

It called on them to consider the consequences of their decision. “Otherwise, they will bear full responsibility for the catastrophic consequences.”

Extending the strike measures keeps the construction industry hostage to the concrete workers and has a negative impact on the economy, Keve said.

Meanwhile, the federation of building contractors (Oseok) expressed its dissatisfaction with the dismissal of the proposal and the indefinite continuation of the strike and said it would be convening a general meeting to examine all possibilities.

Contractor companies are already recording losses as projects are grinding to a halt one after the other due to a shortage of cement.

Head of the contractors’ federation Stelios Gavriel sent out a plea through StockWatch to all involved in the crisis, especially the labour ministry, to consider the consequences and make concessions either side.
StockWatch sources criticised the labour ministry for failing to bring the sides closer and solve the problem in its early days.

“After losing 16 working days of pay and respective revenue for the companies, it will be difficult for the two sides to accept a proposal that will not fully meet their demands,” the sources said.

A labour ministry source said the day after will be ever tougher for the ministry, as it will have to start from scratch.