**Union Demands Abolition of CoLA Ceiling Amid Rising Costs**
Trade union Isotita has called for the elimination of the upper limit on the cost-of-living allowance (CoLA) that can be added to workers' salaries, citing significant increases in living expenses since the beginning of the year. The union's demand comes in light of a deal reached last November among various trade unions, the government, and employers' organizations, which established a ceiling of four percent on the CoLA.
Isotita was notably absent from the negotiations that led to this agreement, a fact it has emphasized in its recent statements expressing dissatisfaction with the current arrangement. The union's leadership has argued that the four percent ceiling is inadequate given the rising cost of living, which has outpaced this limit.
In its official statement, Isotita highlighted that the current CoLA payments are based on a percentage of the previous year's cost of living increase. For the first half of this year, the proportion set for CoLA payments was 80 percent, increasing to 90 percent for the second half. This means that if the cost of living rises by four percent, workers would see a salary increase of only 3.2 percent under the current rules. However, if the cost of living were to increase by a more substantial figure, such as 17 percent, the CoLA payment would still be capped at four percent due to the ceiling.
The union contends that the rapid rise in living costs necessitates a recalibration of the CoLA payment structure. Isotita has proposed that the calculation of the CoLA should be adjusted to reflect the higher inflation rates observed in recent months. The union described the current system as creating a "dead zone" for workers, who are unable to keep pace with rising expenses.
In addition to abolishing the ceiling, Isotita is advocating for retroactive compensation for workers, arguing that the increases in living costs from earlier this year should be acknowledged and addressed. The union has also requested that the practices and studies used to inform the previous agreement be made public, suggesting transparency in how decisions affecting workers' salaries are made.
Historically, the CoLA rate was recalculated twice a year, in January and July, from 1977 until 2013. Isotita is urging a return to this biannual recalculation process to ensure that salary adjustments more accurately reflect current economic conditions.
The previous agreement reached in November saw the CoLA rate increase from 66.7 percent to 80 percent for the first half of this year, with a further increase to 90 percent for the second half. The rate is set to rise to 100 percent on January 1 of the following year. President Nikos Christodoulides, during the announcement of the deal, acknowledged the challenges in reaching an agreement and emphasized the importance of compromise and mutual respect among the social partners involved.
Stelios Christodoulou, leader of trade union Deok, remarked on the unity and fairness displayed by trade unions during the negotiations, stating that the resulting agreement was satisfactory given the circumstances.
As the cost of living continues to rise, Isotita's demands reflect broader concerns among workers regarding their ability to maintain financial stability. The union's push for changes to the CoLA structure highlights the ongoing dialogue between labor organizations, government, and employers regarding fair compensation in the face of economic challenges.