Cyprus: Representativeness of the European social partner organisations – Personal services sector

  • Observatory: EurWORK
  • Topic:
  • Published on: 20 Styczeń 2010



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The aim of this representativeness study is to identify the respective national and supranational actors (i.e. trade unions and employer organisations) in the field of industrial relations in the personal services sector in Cyprus. In order to determine their relative importance in the sector’s industrial relations, this study will, in particular, focus on their representational quality as well as on their role in collective bargaining.

Introduction

There is a lack of representation and collective bargaining in the personal services sector mainly attributed to the structure and the nature of the sector itself, in particular the predominance of very small personal enterprises employing an average of less than two employees. In this context, most the questions of the specific representativeness study are not applicable in the case of Cyprus.

1. Sectoral properties

The available statistical data are derived from the Census of Establishments and Enterprises Survey carried out by the Statistical Service of the Republic of Cyprus covering the census for the years 1995 and 2005. It is noted that the main objective of the Census of Establishments and Enterprises Survey which is carried out every five years, the most recent one being in 2005, is the enumeration of all non-agricultural establishments and the persons employed. As regards the sector of economic activity under examination, personal services, the data shown in the table below refer to NACE 93.02, classified as hairdressing and other beauty treatment.

  1995 2005**
Number of employers 1,985 enterprises 2,488 enterprises
Aggregate employment* 2,526 employees 3,357 employees
Male employment* 663 men 769 men
Female employment* 1,863 women 2,588 women
Aggregate employees n.a. n.a.
Male employees n.a. n.a.
Female employees n.a. n.a.
Aggregate sectoral employment as a % of total employment in the economy 0.88% Estimation by INEK based on the figures of sectoral and total employment provided by the Statistical Service for the year 1995 0.96% Estimation by INEK based on the figures of sectoral and total employment provided by the Statistical Service for the year 2005
Aggregate sectoral employees as a % of the total number of employees in the economy n.a. n.a.

* employees plus self-employed persons and agency workers

** or most recent data

2. The sector’s trade unions and employer associations

This section includes the following trade unions and employer associations:

1. trade unions which are party to sector-related collective bargaining (In line with the conceptual remarks outlined in the accompanying briefing note, we understand sector-related collective bargaining as any kind of collective bargaining within the sector, i.e. single-employer bargaining as well as multi-employer bargaining. For the definition of single- and multi-employer bargaining, see 4.2)

2. trade unions which are a member of the sector-related European Union Federation (i.e. UNI-EUROPA – Hair and Beauty)

3. employer associations which are a party to sector-related collective bargaining

4. employer associations (business associations) which are a member of the sector-related European Business Federation (i.e. COIFFURE EU)

2a Data on the trade unions

The study records no trade unions in the sector of personal services in Cyprus.

2a.1 Type of membership (voluntary vs. compulsory)

n.a.

2a.2 Formal demarcation of membership domain (e.g. white-collar workers, private-sector workers, personal services employees, etc.)

n.a.

2a.3 Number of union members (i.e. the total number of members of the union as a whole)

n.a.

2a.4 Number of union members in the sector

n.a.

2a.5 Female union members as a percentage of total union membership

n.a.

2a.6 Domain density: total number of members of the union in relation to the number of potential members as demarcated by the union domain (see 2a.2)

n.a.

2a.7 Sectoral density: total number of members of the union in the sector in relation to the number of employees in the sector, as demarcated by the NACE definition

n.a.

2a.8 Sectoral domain density: total number of members of the union in the sector in relation to the number of employees which work in that part of the sector as covered by the union domain

2a.9 Does the union conclude collective agreements?2a.10 For each association, list their affiliation to higher-level national, European and international interest associations (including cross-sectoral associations)

2b Data on the employer associations

The study records no employer organisations in the personal services sector in Cyprus.

2b.1 Type of membership (voluntary vs. compulsory)

n.a.

2b.2 Formal demarcation of membership domain (e.g. SMEs, small-scale crafts/industry, personal services enterprises, etc.)

n.a.

2b.3 Number of member companies (i.e. the total number of members of the association as a whole)

n.a.

2b.4 Number of member companies in the sector

n.a.

2b.5 Number of employees working in member companies (i.e. the total number of the association as a whole)

n.a.

2b.6 Number of employees working in member companies in the sector

n.a.

2b.7 Domain density in terms of companies: total number of member companies of the association in relation to the number of potential member companies as demarcated by the association’s domain (see 2b.2)

n.a.

2b.8 Sectoral density in terms of companies: total number of member companies of the association in the sector in relation to the number of companies in the sector, as demarcated by the NACE definition

n.a.

2b.9 Sectoral domain density in terms of companies: total number of member companies of the association in the sector in relation to the number of companies which operate in that part of the sector as covered by the association’s domain

n.a.

2b.10 Domain density in terms of employees represented: total number of employees working in the association’s member companies in relation to the number of employees working in potential member companies, as demarcated by the association’s domain (see 2b.2)

n.a.

2b.11 Sectoral density in terms of employees represented: total number of employees working in the association’s member companies in the sector in relation to the number of employees in the sector, as demarcated by the NACE definition

n.a.

2b.12 Sectoral domain density in terms of employees represented: total number of employees working in the association’s member companies in the sector in relation to the number of employees working in companies which operate in that part of the sector as covered by the association’s domain

n.a.

2b.13 Does the employer association conclude collective agreements?

n.a.

2b.14 For each association, list their affiliation to higher-level national, European and international interest associations (including the cross-sectoral associations).

The only relevant association in the personal services sector is the Pancyprian Federation of Hairdressers, which however, cannot be classified either as an employer association, or a trade union.

In short, the Pancyprian Federation of Hairdressers is a general professional association operating on the basis of law 28(I)/2003 on the Hairdresser’s Register, and apart from setting prices, deals with the entire range of issues affecting the sector i.e. working time, bank holidays, social insurance; representing the interests of all registered hairdressers. In this framework it is important to say, that membership in the Pancyprian Federation of Hairdressers is compulsory, and numbers approximately 3.000 members, including both employees and self-employees. However, according to the federation’s president, the number of persons in the sector who are working as employees is extremely low, while after four years trainees are deemed to have sufficient work experience to run their own establishments. This is probably why there is little or no interest in union membership.

3. Inter-associational relationships

n.a.

3.1. Please list all trade unions covered by this study whose domains overlap.

n.a.

3.2. Do rivalries and competition exist among the trade unions, concerning the right to conclude collective agreements and to be consulted in public policy formulation and implementation?

n.a.

3.3. If yes, are certain trade unions excluded from these rights?

n.a.

3.4. Same question for employer associations as 3.1.

n.a.

3.5. Same question for employer associations as 3.2.

n.a.

3.6. Same question for employer associations as 3.3.

n.a.

3.7. Are there large companies or employer associations which refuse to recognise the trade unions and refuse to enter collective bargaining?

n.a.

4. The system of collective bargaining

There is no collective bargaining in the sector.

4.1. Estimate the sector’s rate of collective bargaining coverage (i.e. the ratio of the number of employees covered by any kind of collective agreement to the total number of employees in the sector).

n.a.

4.2. Estimate the relative importance of multi-employer agreements and of single-employer agreements as a percentage of the total number of employees covered. (Multi-employer bargaining is defined as being conducted by an employer association on behalf of the employer side. In the case of single-employer bargaining, it is the company or its subunit(s) which is the party to the agreement. This includes the cases where two or more companies jointly negotiate an agreement.)

n.a.

4.2.1. Is there a practice of extending multi-employer agreements to employers who are not affiliated to the signatory employer associations?

n.a.

4.2.2. If there is a practice of extending collective agreements, is this practice pervasive or rather limited and exceptional?

n.a.

4.3. List all sector-related multi-employer wage agreements* valid in 2006 (or most recent data), including for each agreement information on the signatory parties and the purview of the agreement in terms of branches, types of employees and territory covered.

n.a.

* Only wage agreements which are (re)negotiated on a reiterated basis.

Sector-related multi employer wage agreements
Bargaining parties Purview of the sector-related multi-employer wage agreements
  Sectoral Type of employees Territorial
       
       

4.4. List the sector’s four most important collective agreements (single-employer or multi-employer agreements) valid in 2006 (or most recent data), including for each agreement information on the signatory parties and the purview of the agreement in terms of branches, types of employees and territory covered. Importance is measured in terms of employees covered.

Four most important agreements in terms of employees covered
Bargaining parties Purview of the agreements
  Sectoral Type of employees Territorial
       
       
       
       

5. Formulation and implementation of sector-specific public policies

Due to lack of representation in the sector of personal services in Cyprus, question 5 on formulation and implementation of sector-specific public policies is not applicable.

5.1. Are the sector’s employer associations and trade unions usually consulted by the authorities in sector-specific matters? If yes, which associations?

n.a.

5.2. Do tripartite bodies dealing with sector-specific issues exist? If yes, please indicate their domain of activity (for instance, health and safety, equal opportunities, labour market, social security and pensions etc.), their origin (agreement/statutory) and the interest organisations having representatives in them:

n.a.

Sector-specific public policies*
Name of the body and scope of activity Bipartite/tripartite Origin: agreement/statutory Trade unions having representatives (reps) Employer associations having reps.
         
         

* Sector-specific policies specifically target and affect the sector under consideration.

6. Statutory regulations of representativeness

Due to lack of representation in the personal services sector in Cyprus, question 6 on statutory regulations of representativeness is not applicable.

6.1. In the case of the trade unions, do statutory regulations exist which establish criteria of representativeness which a union must meet, so as to be entitled to conclude collective agreements? If yes, please briefly illustrate these rules and list the organisations which meet them.

n.a.

6.2. In the case of the trade unions, do statutory regulations exist which establish criteria of representativeness which a union must meet, so as to be entitled to be consulted in matters of public policy and to participate in tripartite bodies? If yes, please briefly illustrate these rules and list the organisations which meet them.

n.a.

6.3. Are elections for a certain representational body (e.g. works councils) established as criteria for trade union representativeness? If yes, please report the most recent electoral outcome for the sector.

n.a.

6.4. Same question for employer associations as 6.1.

n.a.

6.5. Same question for employer associations as 6.2.

n.a.

6.6. Are elections for a certain representational body established as criteria for the representativeness of employer associations? If yes, please report the most recent outcome for the sector.

n.a.

7. Commentary

The lack of representation and collective bargaining in the personal services sector in Cyprus, is due to the structure of the sector itself, and in particular the size and the nature of enterprises operating in the sector. Specifically, according to data provided by the Statistical Service the size of enterprises in the sector is very small, averaging less than two persons, while according to data provided by the Pancyprian Association of Hairdressers, more than 70% of the enterprises in the sector are classified as personal enterprises, employing only one or at most two persons, while the number of enterprises employing 10-15 people is no more than fifteen enterprises at national level.

Eva Soumeli, INEK/PEO

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