Trade union leaders were less than pleased following meetings with Finance Minister Makis Keravnos and Labour Minister Yiannis Panayiotou, with Pasydy secretary-general Stratis Mattheou saying afterwards that employers wish to “degenerate” the cost-of-living allowance (CoLA).

“What has been conveyed to us as the employers’ positions, the conditions set for the granting of CoLA, degenerate the institution of CoLA. We believe that they cannot be accepted under any circumstances, which is why we are proceeding with a meeting of all unions on Monday to take measures,” he said.

He did not specify what those measures may be, but unions already called a general strike over the matter last month, and have threatened further such actions in the intervening period.

Meanwhile, Peo secretary-general Sotiroula Charalambous said unions left the meetings disappointed by what had been conveyed to them as employers’ positions on the matter.

“Unfortunately, with what we heard today, we have gone backwards. It is obvious that we are at an impasse,” she said, before going on to stress that the unions’ position is that “we want [CoLA] to apply to all workers”.

Deok chairman Stelios Christodoulou described the employers’ proposal as “wrong”, while Sek secretary-general Andreas Matsas said their position “completely departs from the framework in which we could reach a true settlement”.

He added that it “confirms the fear we had expressed several months ago, that if things deviated from the right course, they could lead to absurd logic”.

“Unfortunately, we are entering uncharted waters,” he said, before going on to describe the employers’ position as “both immoral and absurd”.

“Proposals are submitted when there is an overall evaluation of the positions of both sides. This is why today, the inability to submit a specific proposal is being recorded, as there is a huge divergence in the positions of both sides. No proposal has been submitted, but the position of the trade union movement remains clear,” he said.

That position, he added, is that CoLA must apply to all.

Later, Matsas said that trade unions’ position “has unfortunately not been properly evaluated” and “not been properly appreciated”.

“We are now accountable to the thousands of workers who enjoy the institution of CoLA through collective agreements, both in the private second and in the public sector, but at the same time, we look into the eyes of the workers who expect … to be able to become beneficiaries of this great right and benefit,” he said.

He promised to “continue to move forward, realising that we are unfortunately entering, not of our own choice, unchartered waters, with all that entails”.

“Things were very different; they were evolving with a positive predisposition until yesterday. We do not know what has changed today so that the whole process is unfortunately leading to disaster,” he said.

Workers and employers have found themselves for months at loggerheads over the matter of CoLA, with a three-hour strike staged last month having brought the island to a standstill.