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Agreement averts strike at Larnaca desalination plant

Cyprus Mail · 2026-08-13

AI SUMMARY

• What happened: A deal was reached between workers and employers at the Larnaca desalination plant, averting a potential strike by renewing the collective agreement for three years, effective from January 1, 2026, to December 31, 2028. • Why it matters: The agreement includes provisions for reduced working hours, annual salary increases, and improved financial security for employees, ensuring the continued operation of a vital facility that supplies desalinated water to the region. • What to watch next: Monitor the implementation of the new collective agreement and its impact on worker satisfaction and plant operations, as well as any future labor negotiations in the sector.

**Agreement Averts Strike at Larnaca Desalination Plant**

The Labour Ministry of Cyprus announced on Thursday that a significant agreement has been reached between workers and employers at the Larnaca desalination plant, successfully averting a potential strike. The dispute primarily revolved around the renewal of the collective agreement and concerns regarding pay.

The Labour Ministry acted as a mediator during the negotiations, which culminated in a renewed collective agreement that will be effective for three years, from January 1, 2026, to December 31, 2028. This agreement is expected to enhance working conditions and address the financial concerns of the employees.

Key components of the agreement include a gradual reduction of weekly working hours from 40 to 38. Additionally, the deal guarantees salary increases for each year of the new collective agreement, which is a significant development for the workers. The agreement also stipulates an increase in hiring salaries and a boost in employer contributions to the provident fund, which is aimed at improving the overall financial security of the employees.

Prior to the agreement, trade unions representing the workers had indicated the possibility of strike action if their demands were not met. The successful mediation and negotiation process has now alleviated those concerns, allowing operations at the plant to continue without disruption.

The Larnaca desalination plant is operated by MN Larnaca Desalination Ltd., a joint venture between Mekorot, Israel's national water company, and Netcom. The plant, which began operations in 2015, is contracted to supply desalinated water until 2040, receiving a payment rate of €0.6 per cubic metre. Currently, the plant produces approximately 60,000 cubic metres of desalinated water daily, playing a crucial role in meeting the water supply needs of the region.

The resolution of this dispute not only benefits the workers but also ensures the continued operation of a vital facility that contributes significantly to the local water supply. The agreement highlights the importance of dialogue and negotiation in resolving labor disputes and maintaining workplace harmony.

Source: Cyprus Mail
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