The Labour Ministry budget doesn’t respond to pandemic’s effects
Statement by Andreas Fakontis, AKEL MP and Chairman of the Parliamentary Committee on Labour, Welfare and Social Insurance, on the 2021 Ministry of Labour budget
26TH November 2020
Today during the discussion surrounding the Labour Ministry Budget for 2021, we concluded that it will not be able to cope with the shocks and effects of the coronavirus pandemic, neither immediately, nor in the long run. The measures to provide support to the vulnerable groups of the population, working people and the unemployed follow the same policies implemented over the last years, without adding anything new. Social benefits are being curbed as the needs of vulnerable groups are growing, unemployment is rising and low wages are already being put under further pressure, whilst 23% of the population in Cyprus is at risk of poverty.
Conditions in the economy and society are still suffering from the effects of the economic crisis of recent years. Namely, deregulated forms of employment, underemployment, low wages and pensions, poverty, inequality and insecurity for the future. The coronavirus pandemic has exacerbated the dire economic situation working people, the self-employed, the unemployed, small and medium-sized enterprises, young people, low-income and vulnerable groups of the population have been experiencing for several years now.
The emergency measures that have been taken to support workers and small and medium-sized enterprises from the effects of the pandemic are moving in the right direction. As AKEL, through our interventions, we have contributed towards the formulation, completion and/or improvement of the specialised schemes, which are being implemented to provide support for employees, the self-employed and small and medium enterprises.
But beyond the emergency measures, Cyprus needs a new model of economic development. It needs policies that fight economic and social inequality and channel resources to low-wage and vulnerable groups of the population. That is precisely why AKEL will continue to fight for:
- The right of all working people to dignified work.
- Introduction of legislative regulations that make essential terms of agreed collective agreements mandatory for all working people in the sectors of economic activity covered by the contract.
- Establishment of a mechanism for the setting of a minimum wage in professions and setting by legislation minimum conditions of employment where workers are not covered by collective agreements.
- Taking measures to deal with undeclared and implied work, as well as false-employment.
- Pension reform and increase in pensions, including the Low income Pensioners Scheme, so that the minimum pension rises to € 800 for a single person and € 1200 for a retired couple.
- Abolition of the 12% penalty charge for those who choose to retire at the age of 63.
- Reshaping of the government’s social policy, in order to create a real welfare state, while structures for child welfare and the provision of long-term care structures for the elderly and people with disabilities must be developed and operated.
- Introduction of an emergency scheme to provide socio-economic support towards families in need, which must cover, among other things, installments, rents, expenses of children studying, etc.
