Labour Minister Yiannis Panayiotou on Friday warned both sides in the cement workers dispute that the economy had been pushed to the limit over something that could and should have already been resolved.
The Cyprus Mail understands that behind-the scene efforts were continuing to try and end the deadlock and there was some optimism for a breakthrough this weekend.
However, considerable damage has already been caused to the economy. Figures emerged later in the day revealed that the construction industry had sustained damage in the region of €80 to €100m since the strike began four weeks ago.
Panayiotou on Friday, speaking at the House finance committee said “the small size of the gap between the unions and employers is out of all proportion to the damage being done to the economy,” the minister said.
“The Cypriot economy should not be pushed to the limit because of a dispute which could have already been resolved.”
Employers and unions are negotiating a new collective agreement but the workers are also demanding restoration of their overtime pay that was reduced by consensus between 2018 and 2020.
They now want it brought back to pre-2018 levels, saying a deal was a deal. The workers argue that the interim boost in the construction industry no longer justified holding back on the original rates.
Panayiotou said on Friday that fortunately none of the 40,000 construction workers affected by the strike had yet been put out of a job by the 500 strikers and 30 companies involved in the dispute.
“To prevent this from happening, both sides must immediately demonstrate the necessary responsibility to bring this to an end,” Panayiotou said.
Stelios Gavriel, the president of the Federation of Associations of Building Contractors of Cyprus (Oseok) told the Cyprus News Agency (CNA) on Friday that this was the longest strike in the history of the Republic lasting 25 days.
“I see no light at the end of the tunnel, unless there are decisive developments in the next 48 hours, which unfortunately falls over the weekend,” he said.
He stated that the two sides early on Friday at least were entrenched in their respective positions despite the efforts that were made both through mediation by the labour ministry and Oseok as well as by the Federation of Employers and Industrialists Federation (Oev) and the Cyprus Chamber of Commerce and Industry (Keve).
“It seems, however, that the two sides have not yet realiaed the criticality of the moments and the damage they have caused to the construction industry and the economy in general, as well as to the workers in the sector,” Gavriel said.
He said the construction sector contributes 16 per cent to GDP.
“If we take into account that the strike lasted a month, the damage according to our own calculations, which is directly connected to cement works, amounts to around €80-€100 million,” he said.
“If you include the indirect effects, which are much greater, you realise the magnitude and the damage that the strike has caused to the economy in general,”
He said if the dispute was not resolved in the next 24 hours, the damage would be almost irreversible.
“The two sides hold the construction industry and the economy of our country in their hands,” he concluded.
Panayiotou had told MPs earlier that depending on behind-the-scene developments on Friday, the government would take it from there so that the sector could get back to work as of next week “so that additional negative consequences do not arise for the construction industry and the economy”.
