As long as DISY remains in government, the Employers & Industrialists Federation (OEB) will govern – Article by Constantinos Zachariou

 

6 July 2022, “Haravgi’ newspaper

The meeting convened at the Presidential Palace on the minimum wage confirmed that as long as DISY remains in power, the Employers and Industrialists Federation (OEB) will be governing.

Following the same policy it has been applying for the last ten years, the government has torn up the formula that was prepared within the framework of the social dialogue that took place and with the contribution of European institutions, putting on the table issues that essentially lead to the further deregulation of labour relations and the impoverishment of a greater number of working people.

For example, the formula submitted by President Anastasiades for the calculation of the minimum wage – based on the data provided by the Statistical Office on the median wage (1.573 euros), instead of the data of the European Office on household incomes (1. 727 euros), which represented the basis on which the discussion between the late Labour Minister Zeta Emilienidou and the social partners took place all through the previous period, leads with mathematical certainty to the transformation of the minimum wage into a tool for the impoverishment of a greater number of workers.

This is because according to the Anastasiades formula the minimum wage will end up at around 786 euros (50% of 1,573 euros), instead of 1,036 euros (60% of 1,727 euros), which is the formula on which the discussion between the late Labour Minister Zeta Emilienidou, employers and trade unions took place during the previous period, but also on which the European Commission’s study was based on and which is included in the recommendations it recently made for Cyprus.

In reality, the Anastasiades formula leads the national minimum wage currently being formulated to lower levels than the one that exists today for specific professions that are not covered by collective agreements (924 euros for shop assistants, clerical assistants, nurses, childcare, nursery and school assistants and carers). Unsurprisingly, the Anastasiades formula does not safeguard those working people covered by collective agreements in which a higher minimum wages exist.

But what is worse is that President Anastasiades has agreed – evidently enthusiastically – to put on the table demands promoted by OEB and the Cyprus Chamber of Commerce and Industry (KEBE), such as the minimum wage not covering newly hired/entrants and people who do not have experience.

With the Anastasiades formula, it is young people and women who will pay the biggest cost. The European Commission’s report on Cyprus points out that 22% of working people have a salary of less than 1,000 euros per month, but also that the introduction of a minimum wage above these levels would primarily benefit young people and women.

It is obvious that as long as DISY remains in power, the same policies will continue to be implemented. Alas, both candidates who come from DISY, namely Averof Neophytou and Nikos Christodoulides, have repeatedly stated that they want to continue the government’s work.

The good thing is that in a few months’ time working people will have the opportunity to bring progressive change by electing Andreas Mavroyiannis as President of the Republic.