Trade unions, employer organisations and public institutions play a key role in the governance of the employment relationship, working conditions and industrial relations structures. They are interlocking parts in a multilevel system of governance that includes European, national, sectoral, regional (provincial or local) and company levels. This section looks at the key players and institutions and their role in Cyprus.
Public authorities involved in regulating working life
The Department of Labour Relations (Τμήμα Εργασιακών Σχέσεων, DLR) of the MLSI is the authority responsible for implementing the government’s policy in the area of industrial relations. Among its main responsibilities, the DLR provides mediation services for the settlement of labour disputes in private and semi-government sectors. Additionally, the department operates the Trade Union Registrar’s Service, which is responsible for the registration and monitoring of social partner organisations in Cyprus.
The main institutions that ensure the enforcement of employees’ rights in Cyprus are (1) the Department of Labour Inspection (Τμήμα Επιθεώρησης Εργασίας) and (2) the Labour Inspectorate (Υπηρεσία Επιθεωρήσεων). The Department of Labour Inspection was set up in 2002 in the context of International Labour Organization (ILO) Convention No. 81 and covers, exclusively, the enforcement of health and safety rules at the workplace. The Labour Inspectorate operates under the Permanent Secretary of the MLSI; it was set up through the Law on the Establishment of the Labour Inspectorate Service (Law 88(I)/2020). The Labour Inspectorate is responsible for the enforcement of a total of 30 pieces of labour-related legislation, not including health and safety legislation, and has replaced the previous labour inspection teams. These teams were multidisciplinary bodies staffed by inspectors from three different departments (the DLR, the Department of Labour and the Department of Social Insurance Services); they were in operation from 2009 until the enforcement of the Labour Inspectorate at the end of 2020.
The Department of Labour is also involved in regulating working life, as under its authority is the supervision of the application of various relevant pieces of legislation, in particular regulating the employment of European citizens and of third-country nationals.
Representativeness
There are no specific criteria for defining the representativeness of employer associations and trade unions at national level. In legal terms, the only statutory regulation that might be considered as establishing criteria of representativeness refers to the formation of trade unions and their obligation to be registered with the Trade Union Registrar (Μητρώο Συντεχνιών). The requirement of official registration with the Trade Union Registrar also applies to employer associations, while a similar obligation applies if a trade union organisation or an employer association wishes to withdraw from the Trade Union Registrar or cease to function.
Overall, the most critical factor in assessing the concept of representativeness is an organisation’s capacity building for social dialogue. In this context, for an organisation to be recognised as a partner in social dialogue and to be classified as a ‘peak national organisation’ (or a ‘central organisation’, which is the most common term in Cyprus), the organisation must be a key player within the existing system of industrial relations. Particularly important are the organisation’s ability to define the terms and conditions of employment through collective bargaining at sector and company levels and its capacity to participate in the consultation process on possible social policy and industrial relations initiatives at national level.
Trade unions
About trade union representation
As provided for by the IRC, both sides recognise the right of employers and employees to organise freely and to belong to organisations of their own choice without any interference or victimisation from either side.
According to the Trade Union Laws, the Trade Union Registrar keeps a register of unions. All unions are obliged to register, after submitting a special application for registration, within 30 days from the date the union is established. To register, each union must have over 20 members, except when fewer than 20 workers are employed in a specific occupation.
In October 2009, a draft bill was introduced to the House of Representatives amending the legislation on trade unions, but, as of 2023, it had still not been enacted. It is currently still with the House of Representatives. The draft legislation was drawn up as part of the MLSI’s efforts, since 1995, to modernise the existing legislation and bring its provisions in line with present-day conditions. For this purpose, extensive consultations were held before the competent tripartite technical committee, which was set up through a decision of the Labour Advisory Board (Εργατικό Συμβουλευτικό Σώμα, LAB); these consultations lasted for almost 10 years. The main parts of the draft legislation were opposed by the Pancyprian Federation of Independent Trade Unions (Παγκύπρια Ομοσπονδία Ανεξάρτητών Συνδικαλιστικών Ορανώσεων, POASO) and by other independent trade unions. One sticking point was Article 9, which increased the minimum number of members required to form a trade union from 21 to 100 people.
In May 2012, Law 55(I)/2012 on the recognition of trade union organisations and of the right to provide trade union facilities for recognition purposes was passed as part of a package of legislative measures for the modernisation of the system of industrial relations, aimed at strengthening legislation provided for by ILO Convention No. 135. In short, Law 55(I)/2012 includes a number of provisions that seek to strengthen the rights to bargain collectively and to give trade union representatives access to workplaces, while still respecting employers’ rights.
The rate of trade union density fell from 76.1% in 1990 to 51.0% in 2008. Although exact figures after 2008 are not available, the Trade Union Registrar estimates that, by 2011, trade union density had dropped below 50%. Between 2011 and 2015, trade unions estimate that there was a further decline. Similarly, the three main trade union organisations that are active in the private sector have reported decreasing membership, although without providing specific figures. The most affected sectors are construction and manufacturing. In the view of the former Minister of Labour Sotiroula Charalambous, between 2008 and 2014 the decrease in union membership was one of the most important problems facing the trade union movement and caused a number of difficulties, including problems with finances. The declining trend in membership is reported by unions to have stabilised in 2016, in line with the stabilisation of the labour market. In 2017 and 2018, trade unions reported increasing membership, although without publishing concrete figures.
Trade union membership and density, 2010–2022
| 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | Source |
Trade union density in terms of active employees (%)* | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | 54.09 | 51.35 | 49.92 | 49.33 | n.a. | n.a. | n.a. | Trade Union Registrar |
Trade union density in terms of active employees (%) | 48.0 | 45.6 | 45.3 | 46.6 | 45.8 | 43.6 | 43.3 | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | OECD/AIAS ICTWSS database 2021 |
Trade union membership (thousands)** | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | 168,123 | 168,891 | 173,285 | 174,338 | n.a. | n.a. | n.a. | Trade Union Registrar |
Trade union membership (thousands) | 186 | 182 | 180 | 175 | 171 | 166 | 168 | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | OECD/AIAS ICTWSS database 2021 |
Notes: * Proportion of employees who are members of a trade union. ** Trade (labour) union membership of employees derived for the total (labour) union membership and adjusted, if necessary, for trade (labour) union members outside the active, dependent and employed labour force (i.e. retired workers, self-employed workers, students and unemployed people). n.a., not applicable; OECD/AIAS ICTWSS, Organisation for Economic Co-operation and Development/Amsterdam Institute for Advanced Labour Studies Institutional Characteristics of Trade Unions, Wage Setting, State Intervention and Social Pacts.
Sources: Eurostat [lfsa_eegaed_custom_766159]; OECD and AIAS (2021)
Main trade union confederations and federations
In Cyprus, the number of members of a trade union is not considered an element of representativeness. In this context, the table ‘Main trade union confederations and federations’ includes trade union organisations that are relatively small in terms of membership but are considered influential in collective bargaining.
In addition to the three peak national organisations – the Democratic Labour Federation of Cyprus (Δημοκρατική Εργατική Ομοσπονδία Κύπρου, DEOK), the Pancyprian Federation of Labour (Παγκύπρια Εργατική Ομοσπονδία, PEO) and the Cyprus Employees Confederation (Συνομοσπονδία Εργαζομένων Κύπρου, SEK) – and despite notable differences between the private and the public sectors, the table also includes three union organisations that are active in the public sector: the Organisation of Greek Secondary Education Teachers (Οργάνωση Ελλήνων Λειτουργών Μέσης Εκπαίδευσης Κύπρου, OELMEK), the Pancyprian Union of Public Servants (Παγκύπρια Συντεχνία Δημοσίων Υπαλλήλων, PASYDY) and the Pancyprian Organisation of Greek Teachers (Παγκύπρια Οργάνωση Ελλήνων Δασκάλων, POED). The reason for including these three organisations is that they correspond largely to the classification of central organisations, mainly in relation to their capacity to influence the outcomes of collective bargaining. For the same reason, the Union of Cyprus Banking Employees (Ενωση Τραπεζικών Υπαλλήλων Κύπρου, ETYK) is also included.
Finally, the table also includes the Pancyprian Federation of Independent Trade Union Organisations (Παγκύπρια Ομοσπονδία Ανεξάρτητων Συνδικαλιστικών Οργανώσεων, POASO; previously POAS – it changed its name in 2020). POAS was established in 1956. The federation unites independent employee organisations, mainly those active in state-owned enterprises, and has an observer status in the LAB. Until the middle of the 2000s, POAS was struggling to survive. However, in 2007, after eight independent unions – operating in public enterprises – joined the federation, POAS emerged again as a key player. It further enhanced its position in 2020, when the Pancyprian Nurse Trade Union (Παγκύπρια Συντεχνία Νοσηλευτών, PASYNO) and the Independent Union of Cyprus’s Public Employees (Ανεξάρτητη Συντεχνία Δημοσίων Υπαλλήλων Κύπρου, ASDYK) also joined the federation. POASO member unions are signatory parties of various collective agreements in the broader public sector.
Main trade union confederations and federations
Name | Abbreviation | Number of members | Involved in collective bargaining? |
2008 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
Democratic Labour Federation of Cyprus (Δημοκρατική Εργατική Ομοσπονδία Κύπρου) | DEOK | 9,407 | 7,125 | 7,123 | 7,024 | 7,113 | 7,172 | 7,173 | n.a. | n.a. | Yes |
Pancyprian Federation of Labour (Παγκύπρια Εργατική Ομοσπονδία) | PEO | 83,132 | 60,686 | 61,559 | 61,372 | 61,458 | 61,656 | 58,291 | n.a. | n.a. | Yes |
Cyprus Employees Confederation (Συνομοσπονδία Εργαζομένων Κύπρου) | SEK | 70,322 | 53,467 | 56,775 | 57,842 | 59,944 | 60,635 | n.a. | n.a. | n.a. | Yes |
Union of Cyprus Banking Employees (Ενωση Τραπεζικών Υπαλλήλων Κύπρου) | ETYK | 10,671 | 9,341 | 8,775 | 8,806 | 9,195 | n.a. | 8,882 | n.a. | n.a. | Yes |
Organisation of Greek Secondary Education Teachers (Οργάνωση Ελλήνων Λειτουργών Μέσης Εκπαίδευσης Κύπρου) | OELMEK | 5,643 | 5,373 | 5,150 | 5,403 | 5,740 | 5,757 | 5,654 | 5,641 | n.a. | Yes |
Pancyprian Union of Public Servants (Παγκύπρια Συντεχνία Δημοσίων Υπαλλήλων) | PASYDY | n.a. | 15,323 | 14,683 | 14,271 | 14,246 | 14,024 | 21,125 | 21,144 | n.a. | Yes |
Pancyprian Organisation of Greek Teachers (Παγκύπρια Οργάνωση Ελλήνων Δασκάλων) | POED | 5,174 | 5,545 | 5,560 | 5,708 | 5,923 | 6,287 | 6,247 | 6,271 | n.a. | Yes |
Pancyprian Federation of Independent Trade Union Organisations (Παγκύπρια Ομοσπονδία Ανεξάρτητων Συνδικαλιστικών Οργανώσεων) | POASO | 1,842 | 1,422 | 1,329 | 1,302 | 1,227 | 1,228 | n.a. | n.a. | n.a. | Yes |
Source: Trade Union Registrar
At organisational level, there have been no notable developments since 2011 regarding the organisation and the role of the trade unions. During the same period, there were no legislative developments that had a direct impact on the role of the social partners in social dialogue, collective bargaining and industrial conflicts.
The most recent relevant developments are as follows.
- ASDYK was established in November 2014 as a result of a split from PASYDY. ASDYK was registered as a trade union in January 2015. In contrast with PASYDY’s organisational structure, the new union’s leadership has a three-year term and a two-term limit. Additionally, any leadership official who gets a promotion will automatically resign their post in the union, while union officials will not receive any payment. As of March 2017, the union had 240 members, mostly public employees of a younger age.
- The Cyprus Trade Union Equality (Παγκύπρια Συντεχνία Ισότητα) was registered in December 2017. The union aims to organise people with non-permanent employment relationships in the broader public sector and, at the end of 2017, it had 360 members.
- Two trade unions, the Cyprus Building, Wood, Mine and General Workers Trade Union (Συντεχνία Οικοδόμων, Ξυλουργών, Μεταλλωρύχων και Γενικών Εργατών Κύπρου) and the Cyprus Metal Workers, Mechanics and Electricians Trade Union (Συντεχνία Εργατών Μετάλλου, Μηχανοτεχνιτών και Ηλεκτροτεχνιτών Κύρου) (both belonging to PEO), finalised their merger in 2022; the process began in late 2021.
- The Independent Trade Union of Technical and Labour Staff of the Electricity Authority of Cyprus (Ανεξάρτητη Συντεχνία Τεχνικού και Εργατικού Προσωπικού Αρχής Κύπρου) was formed in 2021, while the Cyprus Association of Firemen (Σύνδεσμος Πυροσβεστών Κύπρου, trade union) was formed in 2022.
- The Pancyprian Trade Union of Government Pharmacists (Παγκύπρια Συντεχνία Κυβερνητικών Φαρμακοποιών) disbanded in 2021 and the Free Workers and Employees Trade Union of the Cyprus Petroleum Storage Company (Ελεύθερη Συντεχνία Εργατουπαλλήλων Κυπριακής Εταιρείας Αποθήκευσης Πετρελαιοειδών, a member of SEK) disbanded in 2022.
Membership data for 2016–2019, as presented in the preceding table, indicate that the country’s two peak trade union confederations, SEK and PEO, are recovering from the significant membership loss during the recent economic crisis. However, their membership remains far below the pre-crisis level of 2008. Although the data from 2020 onwards are incomplete, it appears that, in general, trade union membership is remaining relatively stable.
Employer organisations
About employer representation
As far as employer organisations are concerned, to date, the structure, organisation and operation of the employer organisations in Cyprus have not been studied and examined in a systematic way.
Most references in this regard are contained in literature that either examines issues of labour law and industrial relations in general or approach the issue of the operation of employer organisations historically.
The two national peak employer organisations are the Cyprus Chamber of Commerce and Industry (Κυπριακό Βιομηχανικό και Εμπορικό Επιμελητήριο, CCCI) and the Cyprus Employers and Industrialists Federation (Ομοσπονδία Εργοδοτών και Βιομηχάνων, OEB). There are no systematic data available regarding employer organisation density. Nevertheless, both the CCCI and the OEB have reported that there is a clear trend of an increasing number of members and a unique rallying of members. In the view of the OEB, the new economic situation that has emerged as a result of the economic crisis, the insecurity of enterprises in this new environment and the urgent need to find solutions have led more enterprises to seek means of representation and protection of their interests. In this context, losses in membership have been offset by new members joining. A noteworthy development in recent years is the dissolution in December 2015 of the Cyprus Bankers Employers’ Association (Κυπριακός Εργοδοτικός Σύνδεσμος Τραπεζών, KEST). KEST was dissolved on the decision of its final remaining members soon after major banks, such as the Bank of Cyprus and Cooperative Central Bank, left the association. Now, the ETYK must negotiate collective agreements with each bank separately.
The Trade Union Registrar (which is also responsible for employer organisations and business associations) testified that, in 2022, there was an increase in the interest and the mobilisation of employers to form new organisations; in fact, the most significant development was the initiation of a process to reinstate KEST in 2022, a process that was finalised in December 2022, eight years after its disbanding.
Employer organisation membership and density, 2012–2022
| 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | Source |
Employer organisation density in terms of active employees (%) | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | 66.1 | n.a. | n.a. | n.a. | n.a. | OECD/AIAS ICTWSS database 2021 |
Employer organisation density in private sector establishments (%)* | n.a. | 43 | n.a. | n.a. | n.a. | n.a. | n.a. | 11 | n.a. | n.a. | n.a. | European Company Survey 2019 |
Note: * Percentage of employees working in an establishment that is a member of any employer organisation that is involved in collective bargaining.
Sources:Eurofound and Cedefop (2020); OECD and AIAS (2021)
Main employer organisations
In addition to the CCCI and the OEB, the table ‘Main employer organisations and confederations’ also includes two sectoral employer associations that are influential in terms of collective bargaining: the Federation of Associations of Building Contractors Cyprus (Ομοσπονδία Συνδέσμων Εργολάβων Οικοδομών Κύπρου, OSEOK), which is a member of the OEB, and the Cyprus Hotel Association (Παγκύπριος Σύνδεσμος Ξενοδόχων, PASYXE), which is a member of the CCCI. It also includes the Association of Cyprus Tourist Enterprises (Σύνδεσμος Τουριστικών Επιχειρήσεων Κύπρου, STEK), which is a member of the OEB.
Main employer organisations and confederations
Name | Abbreviation | Members | Year | Involved in collective bargaining? | Source |
Cyprus Chamber of Commerce and Industry (Κυπριακό Βιομηχανικό και Εμπορικό Επιμελητήριο) | CCCI | 145 professional associations | 2023 | Yes | ccci.org.cy |
Cyprus Employers and Industrialists Federation (Ομοσπονδία Εργοδοτών και Βιομηχάνων) | OEB | 113 employer associations, businesses and professional associations | 2023 | Yes | oeb.org.cy |
Federation of Associations of Building Contractors Cyprus (Ομοσπονδία Συνδέσμων Εργολάβων Οικοδομών Κύπρου) | OSEOK | 5 district associations | 2021 | Yes | oseok.org.cy |
Cyprus Hotel Association (Παγκύπριος Σύνδεσμος Ξενοδόχων) | PASYXE | 235 member companies | 2023 | Yes | cyprushotelassociation.org |
Association of Cyprus Tourist Enterprises (Σύνδεσμος Τουριστικών Επιχειρήσεων Κύπρου) | STEK | 32 hotel members, 20 member companies and 1 professional association | 2023 | Yes | acte.com.cy |
Tripartite and bipartite bodies and concertation
In Cyprus, although the law does not institutionalise social dialogue bodies, there is a long tradition of social dialogue. The implementation of almost all proposals and policies regarding industrial relations is the result of social dialogue between the government, employer organisations and trade unions. However, social partners have been voicing more complaints in the last few years over unilateral decisions and initiatives of the government.
On a practical level, cooperation between the three parties is achieved partly through the operation of technical committees and other bodies of tripartite representation, but mainly through the representation of the stakeholders in the LAB within the MLSI, which is considered to be the most important mechanism of tripartite representation. In the past, every governmental initiative was subjected to exhaustive consultations in the LAB, but, in recent years, a higher number of legal measures have been processed unilaterally by the government without any tripartite negotiation.
The LAB, as the sole body for social dialogue, is occasionally subject to criticism. The main criticism is that social dialogue representation is restricted to a very small number of trade unions, at confederation level only, but without the participation of all confederations. In this context, all other trade unions are practically excluded from the official bodies of tripartite representation and the LAB in particular. Specifically, on behalf of the employers there are three representatives from the CCCI and three from the OEB, while on behalf of the trade unions there is one representative from DEOK, three representatives from PEO and three representatives from SEK. However, depending on the issue in question, representatives from other trade unions or employer associations might be invited on an ad hoc basis, but mainly participating as observers. The LAB was not convened regularly during the recent economic crisis (2012–2015). Since 2018, the Minister of Labour, Welfare and Social Insurance has been resorting to consultations with social partners within the context of the LAB more frequently.
In terms of the issues covered, there is a relatively limited social dialogue agenda and there is a lack of initiative on behalf of the social partners to expand into new areas, such as economic and monetary issues. In the context of the European Semester, for example, the Cyprus National Reform Programme is mainly being prepared by the ministries and other public agencies involved. The involvement of social partners is minimal and limited to the initial stage of the preparation process. Trade unions in particular have, during the recent economic crisis (2012–2015), also criticised the government for committing to various far-reaching agreements with its international creditors (the International Monetary Fund, the European Commission and the European Central Bank) without conducting any consultations with the country’s social partners. Trade unions see such practices as an outright attack on the existing system of industrial relations, which is based on the principle of tripartite collaboration.
After the accession of Cyprus to the European Union, the National Employment Committee (NEC) was created. The NEC has a tripartite composition and is chaired by the Minister of Labour, Welfare and Social Insurance. The NEC played an advisory role on issues related to the implementation of the European employment policy, the performance of the labour market, the modernisation of the Public Employment Service, the monitoring of the National Action Plan for Employment and the reformation of the employment framework of third-country nationals. The NEC has reportedly not been active since the summer of 2015.
It should be noted that the social partners participate in almost all policymaking organisations, such as the Human Resources Development Authority (HRDA) and various other committees and councils of minor importance.
Main tripartite bodies
Name | Abbreviation | Type | Level | Issues covered | Source |
Labour Advisory Board (Εργατικό Συμβουλευτικό Σώμα) | LAB | Tripartite | National | All issues related to labour relations | Own elaboration |
National Employment Committee (Εθνική Επιτροπή Απασχόλησης) | NEC | Tripartite | National | All issues related to employment policy | Own elaboration |
Workplace-level employee representation
Cyprus has a weak tradition in terms of the existing structures for employee representation at establishment level. In this context, the main representation structures to date are the trade union representation and safety committees, while recently established structures such as the European works councils do not seem particularly viable.
In the framework of its mediating role, the MLSI encourages the social partners to promote the establishment of information and consultation (I&C) bodies. As a result, a number of collective agreements at both sectoral and enterprise levels have now incorporated a special clause that refers to social partners’ intention to establish I&C bodies in accordance with the provisions of Law 78(I)/2005 on establishing a general framework for informing and consulting employees. However, so far it has not resulted in any practical and meaningful measures. At the same time, although the social partners agree that the adoption of Law 78(I)/2005 is important as far as it lays down employees’ right to information and consultation on a wide range of important issues, they are not motivated to introduce I&C arrangements, as, in their opinion, I&C rights are safeguarded by the industrial relations system itself.
It should be noted that safety committees exist in establishments with 10 or more employees, as provided for by the legislation on health and safety at work (Law 89(I)/1996) and the relevant regulations on safety committees (Regulatory Administrative Act 134/1997).