Major sectoral labour agreements have been concluded, but negotiations are now turning to the renewal of business-level collective contracts in the private sector, a process expected to affect several thousand employees.

Talks are due to begin shortly between companies and trade unions where collective agreements are already in place, alongside discussions for two to three sectoral contracts that are nearing expiry.

The most complex negotiations are expected at the ports, where trade unions will face three separate employers. The structure of port operations, involving multiple procedures and distinct working conditions, is set to add further strain to the process.

On the employers’ side, talks are expected to involve Eurogate, DP World and the company established by shipping agents, which employs port workers.

The current agreement was signed in January 2025 following mediation by the labour ministry, covering the period from January 1, 2024 to December 31, 2025 and providing for general wage increases of 3.5 per cent in each year.

Beyond the ports, negotiations are also expected to open in public transport, operated by private companies but closely linked to the state, as well as in the wood manufacturing sector and among car importers.

From there, negotiations are expected to move to company-level agreements, which typically run for two or three years and reflect both company-specific conditions and broader sector developments.

Employer organisations are expected to support firms, while trade unions will represent workers.

Unions have already set out their priorities, focusing on wage increases, improvements to benefits and unresolved issues related to provident and welfare funds.

They argue that company profitability has outpaced wage growth in recent years and that the wider performance of the Cypriot economy must be taken into account.

In parallel, the Employers and Industrialists Federation (Oev) has reminded its members of an information meeting scheduled for January 21 in Nicosia, focusing on the renewal of collective labour agreements.

Companies are seeking updates on the cost-of-living allowance (CoLA) and the minimum wage, as well as guidance on handling negotiations and existing union demands.

The talks come as the government continues to promote broader coverage and stronger implementation of collective labour agreements.

Former labour minister Yiannis Panayiotou has said that the renewal of major agreements in sectors such as construction and hotels, extending to the end of 2027, reflects the importance of tripartite cooperation between employees, employers and the government.