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Hotel Unions Threaten Strategic Strike Over Breached Collective Agreement

Agreement Breached Amid Rising Tensions

Hotel sector unions have accused employers of violating a collective agreement signed in December, forcing the unions to consider decisive strike measures. The unions have decried what they describe as the hoteliers’ and employers’ associations’ failure to adhere to the terms set forth during the agreement’s signing in the presence of the labour minister. This breach, they claim, is compounded by persistent non-compliance that continues to escalate.

Disputed Provisions and Employer Concerns

The conflict centers on several contractual provisions, including the allocation for a 13th salary, planned escalations in employer contributions to the provident fund—from 5% to 5.25% in 2026 and 5.5% in 2027—as well as augmented holiday pay during Easter, Christmas, and New Year. Although these elements were tabled before parliament as regulations that carry the force of law, employers contend that they had only consented to collective agreements applying exclusively to union members, not to binding legal regulations covering all employees.

Legislative Developments and Industry-Wide Impact

In a swift legislative move, the House plenary passed the contested regulations during its final session before the summer recess. Despite employer objections, a senior labour ministry official confirmed that in December, hoteliers had willingly endorsed a document that codified the negotiated terms into law. Trade unions, meanwhile, argue that the deal is meant to apply across the entire sector and accuse several hotels of opting out of compliance despite having signed the agreement.

Broader Labor Concerns and Implications for Summer Tourism

Adding another layer to the dispute, unions have highlighted how new hiring criteria for foreign workers have led to deregulated labour relations in the hotel industry. These workers are frequently subjected to exploitative conditions, an issue that further intensifies the unions’ call for reform. As strike actions loom ahead of the peak summer tourist season, union leaders are urging solidarity among workers to mitigate potential disruptions.

Government Intervention and Future Prospects

Labour Minister Yiannis Panayiotou has initiated talks with both parties under the industrial relations code in a bid to resolve the escalating standoff. The outcome of these discussions is expected to be critical in shaping the operational landscape of the hotel industry during one of its busiest periods.

FinTech’s Dominance In MENA: Three Strategic Drivers Behind Unyielding VC Success

Despite facing tightening global liquidity and macroeconomic headwinds, the FinTech sector continues to assert its leadership in the MENA region. In the first half of 2025, FinTech emerged as the most resilient and appealing arena for venture capital investments, proving its worth as a catalyst for financial innovation and inclusion.

Addressing Structural Financial Gaps

In many parts of MENA, a significant proportion of the population remains underbanked and underserved by traditional financial institutions. FinTech companies are uniquely positioned to address these persistent challenges by bridging critical access gaps and driving financial inclusion. With the proliferation of payment apps, digital wallets, and micro-lending platforms, investors have witnessed firsthand how these solutions pave the way for scalable growth and eventual exits. Early-stage momentum in the region is underscored by a doubling of pre-seed deals year-over-year, reinforcing the sector’s capacity for rapid innovation and sustainable expansion.

Highly Scalable and Replicable Business Models

One of the key factors behind FinTech’s dominance is the inherent scalability of its business models. Once the necessary infrastructure and regulatory approvals are in place, these models have demonstrated robust performance across borders. The first half of 2025 saw a marked acceleration in deal activity, with payment solutions leading the charge with 28 deals in MENA—a significant increase over the previous year. Lending platforms, in particular, experienced a meteoric 500% year-over-year increase in funding, emerging as the fastest-growing subindustry. Such replicability makes FinTech an attractive proposition for investors seeking high-growth opportunities in diverse markets.

Supportive Regulatory And Government Backing

The strategic support offered by key government initiatives in the UAE and Saudi Arabia has been instrumental in propelling the FinTech sector forward. Progressive frameworks, such as the UAE’s open finance and digital asset directives, coupled with Saudi Arabia’s live-testing sandboxes, have materially lowered entry barriers for startups. These measures not only foster innovation but also streamline the path to commercialization. Consequently, the combined efforts of these regulatory bodies have enabled the UAE and Saudi Arabia to account for 86% of MENA’s total FinTech funding in H1 2025.

The resilience of FinTech in MENA is not merely a reflection of contemporary market trends—it signals a fundamental shift in the region’s economic fabric. With an unwavering commitment to addressing real financial challenges, scalable and replicable business practices, and robust regulatory support, FinTech is setting the benchmark for sustainable innovation. As capital markets become increasingly discerning, this sector stands out as a beacon of long-term growth and transformative impact.

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