Following months of bargaining and mediation, a deal was finally reached on renewal of the collective agreement for the Cyprus metalworking industry in July 2004. The agreement provides for pay rises and increased contributions to a number of sectoral funds.
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Following months of bargaining and mediation, a deal was finally reached on renewal of the collective agreement for the Cyprus metalworking industry in July 2004. The agreement provides for pay rises and increased contributions to a number of sectoral funds.
On 22 July 2004, following months of bargaining, both directly and through mediation (CY0406103F), a deal was reached on the renewal of the collective agreement in the metalworking industry (which covers some 6,000 workers). The two sides agreed to a mediation proposal by the Industrial Relations Department of the Ministry of Labour, on the basis of which a memorandum of agreement was signed regarding the points of difference between the two sides. The memorandum of agreement was signed on behalf of the workforce by the Cyprus Metalworkers, Mechanics and Electricians Trade Union (SEMMHK-PEO) and the Federation of Industrial Workers of Cyprus (OVIEK-SEK), on behalf of the employers by the Cyprus Metalworking Industry Employers' Association (SYMEVIK), and on behalf of the Ministry of Labour by the head of the Industrial Relations Department.
With regard to the content of the agreement, most of the demands submitted by the trade unions appear to have been met to a large extent. The agreed increases in basic wages and salaries are clearly closer to the unions’ demands than the employers' initial offer and represent an increase of around CYP 5.60 per month for 2004, and increases of around CYP 5.85 in both 2005 and 2006. In addition, it was agreed that pay scales of all grades will be increased by the amount of the general increases during each year that the agreement is in effect. In terms of contributions to the sector's health insurance fund, there was agreement on the unions’ demand for a CYP 0.10 weekly rise in both employers' and employees' contributions, and the contributions will be increased accordingly from 1 July 2004 and 1 July 2006.
The unions were unhappy with the fact that no agreement was reached on starting wages (ie minimum levels) for skilled technical staff. Instead, under Article 3 of the new agreement, the two sides undertake during the term of the settlement to discuss and set starting wages for these staff, once the national Human Resources Development Authority is in a position to issue certificates of qualification to the various occupational grades concerned. The unions have expressed particular satisfaction that their standing demand for the creation of a sectoral welfare fund for recreational and cultural purposes was met. Thus, from 1 January 2005 the employer will contribute 0.30% of each worker’s total pay into existing union welfare funds. From 1 January 2007, the employer’s contribution will be increased to 0.50% of pay, and a contribution of 1.5% will be deducted from each employee’s annual '13th month's wage' payment.
A significant new clause regarding cases of 'force majeure' has been added to the agreement. As with a similar provisions agreed in the construction industry earlier in 2004 (CY0404101N), the metalworking agreement now provides that if circumstances arise completely outside the control of the employer, which are not the employer’s fault but directly influence its operations, the two sides will consult in order to find mutually acceptable solutions aimed at moderating the effects on the company.
The new collective agreement for the metalworking the sector takes effect retroactively from 1 January 2004 and will remain in force for three years, until 31 December 2006.
Eurofound recomienda citar esta publicación de la siguiente manera.
Eurofound (2004), New agreement signed in metalworking, article.
