In a significant development for the Cypriot construction industry, the collective agreement has been renewed until the end of 2027. The renewal follows the acceptance of a mediatory proposal by the social partners in the sector, including PEO, SEK, DEOK, and OSEOK. The Minister of Labour and Social Insurance, Yiannis Panagiotou, highlighted the agreement as a collective triumph of tripartite social cooperation, serving the public interest and benefiting all parties involved.

The agreement emerged from a proposal submitted by the Minister on 19 July, marking a successful negotiation process between trade unions and employers’ associations. Panagiotou emphasised that the agreement ensures labour peace within the construction industry, a critical factor for the sector’s growth and the stability of the Cypriot economy, especially in a volatile global environment.

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Key aspects of the agreement include the restoration of wage reductions from the past decade and the introduction of planned salary increases and benefits over the coming years. Additionally, specific actions are outlined to enhance wage convergence and tackle illegal and undeclared work effectively.

The Minister expressed gratitude to the leadership of the trade unions and employer organisations for their constructive collaboration, which is essential for implementing the agreement’s provisions. This cooperation is expected to improve labour relations and enhance the operational framework of the construction industry concerning labour issues.

The formal signing of the agreement is scheduled for 31 July 2024 at the Ministry of Labour and Social Insurance. This agreement marks a critical milestone in maintaining a stable and prosperous working environment in Cyprus’ construction sector, setting a precedent for other industries.

This renewal is anticipated to positively impact the construction industry, contributing to the broader economic stability and development of Cyprus. By ensuring fair wages and working conditions, the agreement aims to foster a productive and harmonious industrial environment, crucial for the island nation’s economic trajectory.