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Cyprus Unions Demand Urgent Inspections Over Rising Use Of Temporary Hotel Workers

Trade unions representing hotel and leisure-centre workers in Cyprus are calling for immediate workplace inspections, warning that the growing use of temporary agency workers is undermining labour protections across the hospitality sector.

Unions Raise Legal And Contractual Concerns

Ouxeka-Sek and Syxka-Peo have written to Labour Minister Marinos Mousiouttas, Labour Relations Department Director Andis Apostolou and Labour Department Director Alexandros Alexandrou, urging the government to intervene.

The unions said the increasing use of temporary agency workers in hotels and leisure centres has become a widespread problem. They argue the practice violates the Temporary Agency Work Law of 2012, Law 174(I)/2012, while also undermining collective agreements and labour regulations.

Pressure Mounts On Labour Oversight

The unions warned that the issue has been compounded by the new framework governing the employment of third-country workers. In their view, the combined effect is weakening labour protections and distorting competition across the hospitality sector.

Their intervention follows an earlier warning from the Labour Relations Department. In a letter dated June 17, 2025, Apostolou reminded hotel associations of their legal obligations under the existing framework.

The unions said the practice has nevertheless continued and is becoming more widespread, increasing pressure on the government to step up enforcement.

Part Of A Wider Pattern Across Key Sectors

The concerns in the hospitality sector follow similar warnings from the construction industry, where Peo, Sek and Deok said the growing use of temporary workers has led to violations of collective agreements, unsafe working conditions and the treatment of employees as disposable labour.

Meanwhile, the government has announced plans to double the number of labour inspectors from eight to 16 as part of efforts to strengthen enforcement against illegal and undeclared employment.

Call For Immediate Action

Ouxeka-Sek and Syxka-Peo are calling on the Labour Ministry to carry out immediate inspections at hotels and leisure centres, enforce compliance with labour legislation, stop unlawful practices and protect workers’ rights.

Retail’s AI Push Faces A Cybersecurity And Regulatory Reality Check

Artificial intelligence is becoming a strategic priority for retailers, with 80% of retail leaders planning to increase investment in the technology, according to EY’s latest CEO Outlook Survey. However, growing concerns over cybersecurity, customer privacy and regulation could complicate adoption across an industry already facing inflation, geopolitical uncertainty and changing consumer expectations.

Confidence In AI Comes With Risks

The survey found that 80% of retail leaders are confident in their ability to expand the responsible use of AI and customer data. Retailers are increasingly applying the technology to demand forecasting, inventory management, customer service and personalised marketing, seeking to improve efficiency and respond more quickly to market changes.

Yet adoption brings new vulnerabilities. EY found that 24% of retail leaders identified cybersecurity and data privacy as a leading business risk for the year ahead. Retailers manage sensitive customer information, payment systems and complex supply chains, making effective security and governance essential as AI becomes more deeply embedded in their operations.

The World Economic Forum’s Global Cybersecurity Outlook 2026 highlights the wider challenge: 87% of organisations reported rising cyber risks linked to AI vulnerabilities, while 94% expected malicious AI to have a significant impact on cybersecurity in 2026.

Regulation Will Shape AI Adoption

Regulatory frameworks are also influencing how quickly retailers can expand their use of AI. The European Union’s AI Act, China’s state-led governance model and measures introduced by individual US states are shaping the rules around the technology.

For retailers, compliance is becoming a strategic consideration, particularly for customer-facing applications that use personal data to personalise offers, automate interactions or analyse consumer behaviour. Regulatory missteps could carry significant costs in a sector where customer trust is critical.

EY Outlines Four Possible Futures

EY recommends that retailers plan for multiple outcomes rather than assume the current investment boom will continue uninterrupted. Its analysis draws on a four-scenario framework developed by Jim Dator of the University of Hawaii.

One scenario envisages constrained AI adoption as economic pressures, regulation, cyberattacks, legacy systems and poor data quality limit progress. Retailers in this environment may prioritise lower-risk back-office applications, such as finance, procurement, inventory and logistics, while customer-facing tools face resistance.

A second scenario anticipates continued growth, with sustained investment and widespread adoption. A third envisages deeper economic and social transformation as technology reshapes business operations. The fourth considers systemic breakdown, in which a small number of technology platforms control access to AI models and charge premium prices, potentially making advanced capabilities less accessible even to large retailers.

Governance Will Determine Competitive Advantage

EY’s findings suggest that investment alone will not determine which retailers benefit most from AI. Companies will also need robust cybersecurity, effective governance and strategies that can adapt to different economic, technological and regulatory conditions.

For a sector operating on tight margins, the challenge is to turn AI investment into lasting business value while managing the risks that come with greater dependence on the technology.

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