On 2–3 June, in Nicosia, Cyprus, Jurga Subačiūtė-Žemaitienė, Vice-President of the Lithuanian Industry Trade Union Federation and member of the European Economic and Social Committee (EESC), participated in an extraordinary meeting of the EESC Workers’ Group dedicated to the upcoming Cypriot Presidency of the Council of the European Union.
The event brought together representatives of Cypriot trade unions, the government, European institutions and academia to discuss the most pressing labour market, social policy and economic challenges facing the European Union.
One of the key topics was Cyprus’ social dialogue model, which is often cited as a successful example of cooperation between social partners. As early as 1967, trade unions, employers’ organisations and the state agreed on a mechanism for resolving labour disputes, which continues to serve as an important tool for maintaining industrial peace. More recently, the social partners also reached an agreement to reduce the standard working week from 40 to 38 hours.
Data presented during the meeting showed that around 43% of workers in Cyprus are members of trade unions, while collective bargaining coverage is at a similar level. These are among the strongest figures in the European Union and demonstrate the important role collective bargaining plays in the country’s industrial relations system.
Considerable attention was also devoted to the Cost of Living Allowance (COLA) system, which helps protect workers’ purchasing power from the effects of inflation. Discussions are currently underway on expanding the system, with plans to achieve full (100%) inflation compensation from 2027.
Participants also discussed Cyprus’ minimum wage system. The country applies a two-tier model: during the first six months of employment, the statutory minimum wage is €979 gross per month. After six months with the same employer, it increases to €1,088 gross.
Cyprus’ Minister of Labour and Social Insurance, Marinos Moushouttas, presented the country’s key social policy priorities. These include pension reform, ensuring adequate wages, strengthening social dialogue and expanding the use of social criteria in public procurement.
Although Cyprus boasts one of the lowest unemployment rates in the European Union, at around 4.3%, the country still faces significant social challenges. One of the most pressing is the high risk of poverty among older people, affecting approximately one-third of pensioners.
Another important topic was the impact of climate change on workers and labour markets. Speakers highlighted that climate change is increasing social inequalities between generations, countries and social groups. It was also noted that labour productivity decreases by 2–3% for every degree Celsius above 20°C, underscoring the need for investment in protecting workers from heat stress and adapting workplaces to changing climate conditions.
Particular attention was given to the All-Cyprus Trade Union Forum, which brought together both Greek Cypriot and Turkish Cypriot trade union representatives. This format is regarded as a unique example of social dialogue, cooperation and mutual trust in Europe.
According to J. Subačiūtė-Žemaitienė, the event once again confirmed that strong social dialogue, collective bargaining and workers’ involvement in decision-making are essential for building a socially just, resilient and competitive Europe. Such practices can also serve as valuable examples for countries seeking to strengthen worker representation and social partnership at the national level.