In September 2004, after lengthy collective bargaining and mediation, a new sectoral collective agreement was concluded for the Cypriot hotels industry. The deal provides for a 2.3% basic pay rise from October 2004, and also includes new provisions on matters such as health and safety and occupational classification.
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In September 2004, after lengthy collective bargaining and mediation, a new sectoral collective agreement was concluded for the Cypriot hotels industry. The deal provides for a 2.3% basic pay rise from October 2004, and also includes new provisions on matters such as health and safety and occupational classification.
On 13 September 2004, following intensive bargaining both through direct talks and during mediation, hotel employees' trade unions and representatives of hotel employee accepted a mediation recommendation from the Ministry of Labour and agreed to conclude a new collective agreement for the hotels sector. The new agreement, which covers around 16,000 employees, was signed by: the Minister of Labour and Social Insurance: the Union of Hotel and Recreational Establishment Employees of Cyprus (SYXKA-PEO), affiliated to the Pancyprian Federation of Labour (PEO), and the Federation of Hotel Industry Employees (OUXEB-SEK), affiliated to the Cyprus Workers' Confederation (SEK), representing the employees; and the Pancyprian Association of Hoteliers (PASYXE) and the Association of Cyprus Tourist Enterprises (STEK), representing the employers.
The new agreement runs for two years, from 1 April 2004 (retrospectively) to 31 March 2006. The pay increases provided for in the final deal deviate significantly from the trade unions’ demands (CY0407102F). The new agreement provides for a total increase of around 2.3% on basic wages as they stood on 31 March 2004, to be paid beginning on 1 October 2004. The minimum starting wages of new labour market entrants will remain unchanged during the first year the agreement is in force, and will be increased on 1 October 2005 by 75% of the general increase granted on 1 October 2004. If, on 1 October 2005, such workers are identified whose wages are below the minimum levels reached after payment of the 75% rise, the agreement provides that such workers will automatically be placed at the low end of the normal pay scale.
The agreement's most important provisions regarding non-pay issues are those pertaining to workplace health and safety and the inclusion of new occupations in pay scales. With regard to health and safety, the unions' demand for the immediate establishment and operation of health and safety committees in all hotels, based on the provisions of current legislation (CY0404102F), was accepted. As for the inclusion of new occupations, out of a total of five such occupations provision has been made for the inclusion of only two in pay scales, those of 'butler' and public relations assistant. It is up to the social partners jointly to decide in which pay scale these jobs should to be included.
To the unions' disappointment, the new agreement makes no reference whatsoever to their demand for a set procedure for determining the staffing structure in each hotel. An employers’ demand regarding the method for calculating sick leave was accepted. Article 8 of the agreement now specifically states that if an employee’s illness coincides with a public holiday the holiday will be taken into account when calculating sick leave and will therefore be deducted from the total number of days of sick leave to which the employee is entitled during the reference year.
In the opinion of all the parties involved, failure to achieve agreement might have had negative results on pay and conditions and also on employment in the sector, especially in view of the fact that the tourist season in Cyprus extends throughout the autumn. Given allegations of continued breaches of collective agreements and labour legislation in some hotels, union representatives have stated that henceforth all efforts should focus on the wide-scale implementation of the new agreement at workplaces.
Eurofound recommends citing this publication in the following way.
Eurofound (2004), Collective agreement signed for hotels industry, article.
