Nicosia, Cyprus. Trade union Isotita on Thursday called for the abolition of the upper limit on the proportion of a worker’s salary payable through the cost-of-living allowance, saying prices have already risen by more than that amount since the start of the year. The union also demanded a recalculation of the payment rate and the introduction of a new rate from the beginning of next month.
Dispute over CoLA ceiling
A deal reached by trade unions, the government and employers’ organisations last November set a ceiling of four per cent of a worker’s salary on the amount payable through CoLA. Isotita was not present at those negotiations and said it was dissatisfied with the arrangement.
The union said it had been excluded from the negotiating table and from cooperation with other unions.
Current calculation method
The current payment rate is based on a proportion of the increase in the cost of living in the previous year. That proportion was set at 80 per cent for the first half of this year and 90 per cent for the second half.
Under that formula, if the cost of living rises by four per cent in a year when the proportion is set at 80 per cent, workers receive a 3.2 per cent salary increase through CoLA. If the same proportion is applied and the cost of living rises by 17 per cent, the amount payable would still be four per cent because of the ceiling.
Union demands
Isotita said the accelerated rise in the cost of living during the first half of this year compared with last year means the rate on which the proportion is calculated should also be increased.
The union said this should happen “so that the dead zone can be closed”. It also said workers should receive retroactive compensation in light of the increase in the cost of living.
Reference to previous system
On the issue of recalculating the payment rate, Isotita said that between 1977 and 2013 the rate was recalculated in January and July each year, rather than once a year as it is now.