Soumeli, Eva

This article gives a brief overview of the industrial relations aspects of undeclared work in Cyprus, as of June 2004. It looks at: the nature and extent of undeclared work; the regulatory framework; the role, activities and views of the social partners; and partnerships between social partners and public authorities to tackle undeclared work.

In summer 2004, bargaining over a new collective agreement for the Cypriot hotels industry has reached a deadlock, and the matter has been referred to mediation. The tense industrial relations climate has been exacerbated by allegations that many employers in the sector are systematically breaching the terms of collective agreement and labour law.

In June 2004, the Employers and Industrialists Federation (OEB) of Cyprus issued a code of practice aimed at addressing the problem of sexual harassment in the workplace.

In early June 2004, the Cyprus Ministry of Labour and Social Insurance declared a deadlock in a labour dispute regarding renewal of the collective agreement for the 6,000 workers in the metalworking industry, which centres on disagreements over pay increases and working time. In mid-June, the trade unions were in the process of calling industrial action.

In May 2004, the Greek Cypriot Pancyprian Federation of Labour (PEO) and the Turkish Cypriot Revolutionary Trade Unions Federation (DEV-IS) held a meeting to assess the results of the referendum held on 24 April 2004 - when the Turkish Cypriot community voted in favour of the Annan Plan for reunification and Greek Cypriot against it - and create a framework for future joint action.

Cyprus has a system of statutory minimum wages that applies to only six specific occupations. In April 2004, the government increased the minimum rates for these jobs by nearly 8%. This is in line with a previous decision aimed at gradually bringing the minimum wage for the six occupations up to 50% of the national median wage by 2008.

In April 2004, the Ministry of Labour and the social partners agreed to implement a previous agreement on mandatory healthcare insurance for migrant workers in Cyprus.

Cyprus is a presidential republic. In the presidential elections held on 16 February 2003, Tassos Papadopoulos was elected President of the Republic, with the support of four parties, the Progressive Party of the Working People of Cyprus (AKEL), the Cyprus Democratic Party (DIKO), the United Democratic Union of the Centre (EDEK) and the Ecologists/Environmentalists. This political development is considered to be of particular importance for industrial relations, since governance of the country from 1993 to 2003 by the conservative Dimokratikos Synagermos Party, supported by the Liberal Democrats (EDIK), with Glafcos Clerides as President, was widely seen as having a negative effect on the institution of social dialogue relating to economic policy.

In March 2004, a tripartite agreement on the procedure for resolving labour disputes in essential services was signed in Cyprus, following nearly a decade of discussions. The accord introduces an arbitration procedure in such disputes but does not rule out industrial action.

In April 2004, a new collective agreement was signed in the Cyprus construction industry. Key provisions include a pay increase of around 4.6% over two years, changes to guaranteed weekly pay and a commitment by the parties to improve implementation of the agreement. The conclusion of the construction deal is likely to pave the way for agreements in other sectors.