The labour ministry on Thursday announced a deal was clinched between workers and employers at the Larnaca desalination plant, averting the possibility of strike action.

The dispute was over renewal of the collective agreement and pay.

The labour ministry – which acted as mediator – said the collective agreement has been renewed for three years – spanning January 1, 2026 through to December 31, 2028.

Following talks and a mediation proposal, the two sides agreed that weekly work hours will be gradually reduced from 40 to 38. In addition, salary increases are guaranteed for each year of the renewed collective agreement, hiring salaries will go up, and the employer will contribute more to the provident fund.

Earlier, trade unions representing workers had intimated strike action.

The agreement concerns the company MN Larnaca Desalination Ltd.

A joint venture of Mekorot – the national water company of Israel – and Netcom, the company landed the contract for the Larnaca desalination plant in 2015.

Under the contract, which runs until 2040, the company is paid a rate of €0.6 per cubic metre.

The Larnaca plant generates approximately 60,000 cubic metres of desalinated water daily.