Trade unions on Monday evening said they would go ahead with the general strike on Thursday after yet another meeting on the Cost of Living Allowance (CoLA) with employers and the labour minister earlier in the day failed to reach agreement.

“Essentially, nothing positive emerged from today’s meeting that would have any effect on the current situation. Therefore, we call on all workers to participate en masse and vigorously in the general strike,” Sek, Peo, Pasydy and Deok unions said in a joint statement.

The unions said that employers had “essentially dismantled the [existing] agreement” by insisting on their “long-standing position” on CoLA conditions, stressing they would not accept any agreement that would change the current amount of payments.

“Even the [labour] minister’s positive reference to a discussion of universal CoLA was immediately and categorically rejected by the employers,” the unions added.

Labour Minister Yiannis Panayiotou, after the meeting outlined the governments plans for improving CoLa and urged urged both parties to continue their dialogue, warning that confrontational actions would only widen the gap between them and needed to be avoided.

He said that so far, there had been progress in areas like full employment and the upgrading of professional skills and that the conditions for a fairer distribution of economic growth, particularly for low-wage earners and the middle class had already been created.

Panayiotou then announced four core points outlining the government’s position on the modernisation of CoLa, which he had discussed with both the employer and union sides during the meeting.

First, he said the government aimed for an extension of CoLa to cover all employees, including those in the private sector.

The minister said that the government’s second aim was to ensure fairer distribution of CoLa, focusing on low-wage earners.

Thirdly, he mentioned introducing safeguards to ensure CoLa did not harm competitiveness or development.

As his fourth and final point, he said that criteria to prevent wage increases from causing inflation needed to be established to ensure that the increase of wages did not lead to further inflation or damage the economy in the long term.

Panayiotou emphasised that despite the difficulties that emerged during the current negotiations, he remained optimistic that through further mediation, the conditions would soon be right for a proposal that could lead to a positive outcome.

“Trade unions and employers ‘ associations are invited to participate in the social dialogue with good faith and a positive approach, avoiding confrontational positions, unilateral actions and strike measures that negatively burden the process,” he said.