The government is “committed to social dialogue,” Labour Minister Yiannis Panayiotou said on Tuesday, expressing optimism that agreement on the cost of living allowance (CoLA) can still be achieved despite employers’ organisations saying earlier they would not meet any officials over the matter until Monday.

He said the government is focused on finding a constructive way forward.

“The necessary infrastructure exists so that reaching an agreement can be made possible through the participation of everyone in the process,” he said.

Employers’ organisations Oev and Keve said they will meet neither any state officials nor make any statements until Monday.

On Monday night, President Nikos Christdoulides had also expressed the hope of finding a way forwards and said negotiations would continue under the ministers of labour and finance.

Panayiotou added that common ground could be found if all parties showed readiness to bridge their differences. “Social dialogue needs the constructive contribution of the parties that make up the tripartite social cooperation,” he said.

He expressed confidence that the maturity and seriousness demonstrated by social partners over time would again prevail. He said he had not yet received official communication on the employers’ decision.

Responding to questions about the basis of his optimism, he said that all sides’ positions were already clear, and that progress could only come “through dialogue, not confrontation.”

He added that a mutually beneficial agreement could secure the future of CoLA.

Meanwhile, trade union Sek marked October 7 – World Day for Decent Work – by pointing out that CoLA was part of what constituted decent working conditions, along with provident funds, socially-fair tax reforms, upgrading the minimum wage, improving the pension system and revising the strategy for workers from third countries.

Sek said the struggle for decent work should be continuous and aim at improving and strengthening the true income of all workers, by linking salaries with the cost of living.

It reiterated that one in three workers was paid less than €1,500 per month and one in five less than €1,200 per month.

Sek said its aim was to increase the number of workers covered by collective agreements, which now stands at 43 per cent.

Last month, Cyprus was brought to a standstill as thousands of workers staged a nationwide strike outside the finance ministry, chanting “Hands off CoLA” and “CoLA for all workers,” demanding the full restoration of the Cost of Living Allowance.