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Cyprus hoteliers seek clarifications over new collective agreement

September 12, 2019 at 9:32am
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The Cyprus Hoteliers Association’s board and district representatives yesterday met for hours to review and seek clarifications over the new collective agreement reached between the two sides in the hotel industry.

Developments, however, are expected to take place within the coming weeks when they get to hold a special general meeting to approve the collective agreement, provisions of which do not satisfy all hoteliers.

The deal, brokered last month by Labour Minister Zeta Emilianidou, also provides for cuts in salaries made in 2013 to be gradually restored with insiders saying the resulting cost for hotel units exceeds 13%, while in some it can reach up to 20%.

Hotel units will be affected differently by the collective agreement since some have already offer higher salaries, thus, they will be less affected than those giving out lower salaries.

From now on, hotel employees’ pay rises are at 7% – in percentage it is about 5.5% plus 2% due to the integration of the unit ratio. The restoration of salaries will be gradual – 0.5% in 2019, 1% in 2020, 1.5% in 2021 and 2% in 2022.

Regarding holiday allowances, the compensation will be 1-1.5 in 2021 and 1-2 in 2022. And the rate of contribution to the provident fund will reach 6.5% because it will be based on the new higher salaries.

At the same time, hotel employees are holding district assemblies to also exchange views and cast a vote on whether to approve the prioposed deal or not.

The first such gathering took place in Limassol and yesterday it was Larnaca’s turn but the final result won’t be announced before all districts get to finish with the process.

First indications are that hotel employees are positive on the provisions of this deal and that they will say yes to the Minister’s proposal.

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