Equal opportunities and industrial relations

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This article examines the situation in Cyprus, as at early 2004, with regard to women's position in the labour market, the legislative framework for gender equality, and collective bargaining on this issue. Women have a lower employment rate than men and a higher unemployment rate, and are more likely to work part time or on a temporary basis, while their average pay is lower than men's. Specific legislation on workplace gender equality has been introduced only recently, and bargaining does not appear to deal with equality matters.

Below we look at the current situation with regard to women's position in the labour market, the legislative framework for equality between women and men, and collective bargaining on gender issues

Employment and unemployment among women

Women's share of overall employment (ie the proportion of employed women in the total number of employed people) is significantly lower than that of men. The gap between the numbers of employed men and women in Cyprus is greater than in most of the current EU Member States. According to Labour Force Survey data, in 2002 the overall employment rate (ie the number of employed people aged 15-64 as a percentage of the whole population aged 15-64) in Cyprus was 68.5% (up from 67.9% in 2001). The rate for men was 78.8% (down from 79.4% in 2001) and for women 59% (up from 57.1% in 2001 ). For the group aged 25-54, in 2002 the employment rate was 93.2% for men and 72% for women (and 82.2% in total).

Overall, in recent years the composition of employment has displayed a small but steady shift in women's favour. According to data from the National Statistical Service of Cyprus, over 1995-2001 the presence of women in the labour market showed a steady increase. The percentage of women (of all ages) in employment rose to 41.3% in 2001 from 39.1% in 1995, while the corresponding rate for men was 60.9% in 1995 and 59.7% in 2001.

However, despite the progress in women's participation in the labour market, women have a higher unemployment rate. The overall unemployment rate was 3.4% in 2000, falling to 2.9% in 2001. Unemployment rates for men fell from 2.7% to 2.3% and for women from 4.4% to 3.8%. Some 47% of unemployed women were aged 30-50, and 27% were aged under 29.

Qualitative data on women’s employment

There has been no analysis in Cyprus of the extent of gender-based occupational segregation or of how the situation in this area compares with the present EU Member States. However, according to the data available from the National Statistical Service (Labour Statistics 2001), in both 2001 and over the five-year period 1995-2000, a distinct concentration of women can be seen in certain occupations and fields, mainly in the services sector and in unskilled work.

According to the National Statistical Service's Labour Force Survey, in 2002 there was a fall in overall part-time employment compared with 2001. In 2001, the number of part-time workers stood at 26,000, or 8.4% of total employment, falling in 2002 to 22,600, or 7.2% of total employment. Of these, 7,000 were men (4% of total men's employment) and 15,600 were women (11.3% of total women's employment) in 2002, while the corresponding proportions for 2001 were 5.1% for men and 12.9% for women. With regard to part-time employment undertaken out of necessity and not by choice, the data indicate that in 2002 some 17.3% of part-timers (3,900 workers) turned to part-time employment because they were unable to secure work on a full-time basis, while 65.5% (14,800) chose part-time work because they did not wish to work full time. People in part time employment worked an average of 21.2 hours per week in 2001 and 22 hours in 2002. By gender, the figures in 2001 were 20.9 hours for men and 21.3 hours for women, and in 2002 they were 21.1 hours for men and 22.4 hours for women.

The overall rate of temporary employment also fell between 2001 to 2002, from 10.7% (25,400 workers) to 9.1% (22,100 workers). As with part-time employment, a large majority of workers in temporary employment are women, who made up 16,600 (65.4%) of the total in 2001 and 14,900 (67.4%) in 2002.

However, the situation is different in respect of self-employment and holding a second job. In both these cases, men are in a significant majority. In 2002, out of the total number of 15,300 workers with second jobs (4.9% of all workers), 13,100 were men (4.1% of all male workers) while only 2,300 were women (0.8% of all female workers). In 2002, out of 72,600 self-employed workers, 50,600 were men (69.7%) and 22,000 were women (30.3%). In a society like Cyprus, where traditional, deeply-rooted values and stereotypes regarding the genders and their roles insist that the man is still the head of family, the securing of a second job by men is not surprising. It is possible that men taking second jobs results in a widening of the wage gap to the detriment of women, and also proves unhelpful to women in improving the gender distribution of work within the family.

In conclusion, despite the greater numbers of women in the labour market and, to a certain extent, a shift in the 'patriarchal' structure of employment, the overall situation of women is particularly disadvantageous vis-à-vis that of men. As seen above, women's employment rate lags significantly behind that of men, women's unemployment rate is almost double, and women prefer or are preferred in positions of flexible employment, particularly part-time and temporary employment. At the same time, they continue to be over-represented in low-skilled jobs, and there are indications that they fill a significant number of jobs in the clandestine economy. This last category includes the large number of female migrant workers employed in the so-called 'sex industry', as well as many migrants employed as domestic workers (CY0311103F). In addition, women as a whole constitute the majority of unpaid workers in family enterprises. It should be noted that the largest increase in employment in 2001 (1,400 persons in total) related to private households that employ domestic staff, and was due to the continued increase of migrants employed as domestic workers.

Gender pay inequality

According to the latest overall pay data from the National Statistical Service's Labour Statistics, covering 2001, managers and senior management received the highest pay, followed by qualified professionals and technical assistants, while unskilled workers received the lowest wages. The lowest paid 25% of employees received a monthly wage of about CYP 529 (EUR 875), while the highest paid 25% received monthly wages higher than CYP 1055 (EUR 1,740). The corresponding figures for 2000 were CYP 507 (EUR 840) for the lowest 25% and CYP 975 (EUR 1,610) for the highest. The median wage, which indicates the border between the lowest paid 50% and the highest paid 50% of employees, rose to CYP 729 (EUR 1,210) in 2001 from CYP 692 (EUR 1,140) in 2000.

With regard to the gender wage gap, in 2001 men were paid on average 34.9% more than women, a situation identical to 2000, while women received lower pay on average than men in all main occupational categories. However, the gap was smaller in occupations that require greater skill, such as the managers and senior management, and greater in the categories of machine operators, and people working in the service sector and in sales.

To date, no study has been conducted in Cyprus with regard to the determining factors that create the wage gap between men and women. However, according to indications, the National Statistical Service attributes part of the wage gap to the differences in qualifications between the two genders, length of service, professional duties, the field of work and possible discrimination in certain occupations.

Legislative framework

The prohibition of discrimination and the principle of equality constitute a fundamental legal principle first laid down in the Constitution of the Cyprus Republic in 1960. Specifically, Article 28 of the Constitution provides that 'all persons are equal before the law, the administration and justice and are entitled to equal protection thereof and treatment thereby' and that 'every person shall enjoy all the rights and liberties provided for in this Constitution without any direct or indirect discrimination against any person on the ground of his community, race, religion, language, sex, political or other convictions, national or social descent, birth, colour, wealth, social class, or on any ground whatsoever ...' The principle of equality is a cornerstone of the legal framework, at least formally - commentators point out that the Constitution basically secures formal rights and not necessarily their substantive expression. Moreover, the same principle of equality and non-discrimination governs the Council of Europe's European Convention for the Protection of Human Rights and Fundamental Freedoms (to which Cyprus is a party), and a large number of International Labour Organisation Conventions and other United Nations (UN) instruments ratified by the Cyprus Republic.

However, the most important legislative measures relating to sex equality have occurred recently, notably in terms of the enactment of the following laws:

• Law 205(1) of 2002 on the equal treatment of men and women in employment and vocational training; and

• Law 177 of 2002 on equal pay for men and women for similar work or work of equal value.

These statutes were adopted within the framework of harmonisation of Cyprus law with the EU's 'acquis communautaire' (the body of law which new Member States must implement) prior to accession in May 2004. Specifically, they relate to harmonisation with the following EU Directives:

• Directive 76/207/EC on the implementation of the principle of equal treatment for men and women as regards access to employment, vocational training and promotion, and working condition; and

• Directive 97/80/EC on the burden of proof in cases of discrimination based on sex.

Given that the relevant laws entered into force on 1 January 2003 an assessment of their effectiveness is not yet possible. However, on the basis of the indications to date, some observers question whether the content of the relevant legislation has been made known sufficiently to those who are directly concerned, in order to effect the necessary improvements in the lives of women at the workplace, as these laws intend. Government departments, trade unions, employers' organisations, women's organisations and human rights organisations will all have a great responsibility in making sure that the new provisions are utilised to the greatest possible extent.

It may be noted that the introduction of these laws had been a prominent demand of the women's section of the Pancyprian Federation of Labour (PEO), since 1987 when the UN Convention on the Elimination of All Forms of Discrimination against Women (34/180) was ratified.

Collective bargaining

Despite the fact that in the Cypriot system collective agreements have traditionally played a primary role in regulating industrial relations, with the law playing a secondary regulatory role, the content of such agreements is fairly limited. With regard to the question of equality of opportunity for men and women, it may be said that there is no connection with the collective bargaining process. Although no study has been conducted with regard to the content of collective agreements at sectoral and company level, the indications are that agreements at these levels do not appear to take gender into account in the setting of terms and conditions of employment.

Moreover, with regard to the setting of wages and salaries, the parties to collective agreements are not bound by the principle of a national minimum wage. In other words, a general minimum wage is not set for all unskilled workers. The effect of such a minimum wage would, according to advocates, be to secure a viable basic threshold for worker's survival. In this context, the absence of a minimum wage may help to widen the wage gap between men and women, given that a large number of women are employed in unskilled and low-paid jobs.

Commentary

The position of women in the Cypriot labour market is clearly worse than that of men, in respect both of their participation in employment and unemployment and in relation to the quality of their employment. The same is true with regard to the wage gap between men and women. It is thus necessary to conduct studies relating to occupational segregation, and the factors that determine the wage gap which acts so disadvantageously towards women. With regard to improving women's terms and conditions of employment, the legislative framework has an important role to play. The delay exhibited in previous years in adopting specialised legislation can undoubtedly be counted among the negative developments, while it will be of definitive importance to see whether the recently enacted legislative framework will be put to effective use or not. However, the laws by themselves, no matter how comprehensive, are not enough to wipe out inequality in the workplace and society in general. The social partners are therefore called upon to play a major role both to tackle the gaps, shortcomings and negative provisions of the relevant laws, and to improve the legislation, mainly through establishing a link between the collective bargaining process and equal opportunities. (Eva Soumeli and Nikos Trimikliniotis, INEK/PEO)