A decision that locks in the national minimum wage may not have been made, but yesterday's meeting at the Presidential Palace produced several other interesting pieces of news.
First the basis of consultation changes and from the methodology of the EU-SILC European survey on the median salary, the methodology of the Statistical Service is adopted.
Evolution, which clearly leaves satisfied the employer side and dissatisfied the guild since we are talking about a difference 154 euro in the amount which will be set as a basis for discussion. (The difference in the amount of the salary as we will see below is 92 euros). Also, the new consultation that will begin with the new Labor Minister Kyriakos Kousios and the social partners, should be completed in accordance with the President of the Republic's wish within two months, that is, by the end of August. And it may not have locked in the minimum wage amount, but with the new formula decided, essentially being photographed, according to calculations that we will quote below.
More detailed. Employers' and trade unions' organizations entered and exited yesterday's meeting at the Presidency. The guilds believed that in the meeting, even if the lowest one does not lock, the foundations will be laid so that his height is considered a given and the whole process will be completed in a second meeting. On the other hand, the employers hoped that the objections they had expressed a long time ago would be accepted and the opportunity would be given for a second negotiation. In the end, the employers left the meeting satisfied after the decision of the President changed the basis of consultation and the methodology of the Statistical Service will be adopted instead of the EU SILC, while the trade union side is visibly disappointed and considers that with the change of the basis steps were taken backwards.
So what was decided yesterday?
As is well known, the minimum wage is a percentage of the national median wage and will be calculated based on this. In fact, the EU had stated a few days ago that member states can apply indicative reference values that are widely used internationally, such as 60% of the gross median salary and 50% of the gross average salary.
In the discussions so far, the methodology of the EU-SILC European survey was included, based on which the median salary was set at €1.727. An amount 9% higher than that of the national Statistical Service, which set the median salary at €1.573. In other words, there is a difference of 154 euros in the amount that will be set as a basis for discussion and on which the minimum wage will depend. It is emphasized that all amounts mentioned refer to gross earnings.
So the decision that was made is to use as a basis the methodology of Statistics, that is the 1573 euros of the median salary.
Therefore, 870 euros (which is the lowest today for nine professions) corresponds to 55.3% of the average salary in Cyprus according to the Statistical Service (1573 euros).
And 924 euros (which is the minimum wage in nine professions today after 6 months of continuous work) amounts to 58.7% of the average wage of the Statistical Service.
It is noted that according to the EU guidelines, the minimum wage can reach up to 60% of the median wage, i.e. based on the 1573 euro which is the median wage, the minimum wage can reach up to 944 euro. Therefore, the deviation from the current minimum wage (924 euros) amounts to only 20 euros. (Therefore there is no great scope for an increase from 924 euros in terms of the national minimum wage that will be adopted).
So based on the amounts and percentages that became known yesterday, the Employers' Organizations are talking about a minimum wage of around 944 euros (after 6 months of continuous work), and the Trade Unions are talking about a minimum wage of 1036 euros (because they have as a basis for their calculation the Cyprus median salary calculated by EU-SLIC instead of the Cyprus Statistical Service). Therefore the difference is 92 euros.
It is noted that as is well known, both Zeta Emilianidou and the unions had stated that the national minimum wage cannot be lower than these numbers. In other words, they will not come to reduce wages by adopting the minimum.
What the Government Spokesperson said
Indicatively, the government through its representative, Marios Pelekanos, emphasized that the dialogue will continue with the aim of establishing the minimum wage soon, without however giving a specific time frame. "Because during the discussion some differences were identified between the employers' organizations and the trade unions, the President requested that the dialogue be continued under the auspices of the Minister of Labor and Social Insurance within the framework of a strict timetable", said Mr. Pelekanos in his statements. "In any case, the President of the Republic assured that the government's decision is to soon establish a national minimum wage", he emphasized.
What the Employers are saying
The president of the KEBE, Christodoulos Agastiniotis, said yesterday that no EU country has adopted the EU SILC methodology and therefore Cyprus should not do so either, as was done, something that satisfies the KEBE.
For his part, the general director of OEB, Michalis Antoniou, expressed his optimism that even with the new data, the social partners will find common ground and reach an agreement on the minimum wage. As he said, there are several issues to be discussed, but by the end of August the consultations should be completed.
What do the Guilds say?
In her own statements, the General Secretary of PEO, Sotiroula Charalambous, said that "a minimum wage, which will perpetuate poverty wages and will standardize and institutionalize by decree or law a group of workers, whatever they may be, that will live on wages which is below the poverty line, under no circumstances is PEO going to accept,” he said.
The President of DEOK, Iosif Anastasiou, said for his part that "the employers' organizations have raised issues, which essentially overturn the entire discussion that had been held until today and the basic assumptions that had been made regarding the minimum wage". "For the first time, we heard new issues from the employers," he said.
In his own statements, SEC General Secretary Andreas Matsas said that after today's meeting he will have to prove that "he is not an alien". "Today, he added, we have taken steps backwards," he said and added: "It is clear that the framework that was created with the contribution of the social partners themselves by Zeta is being differentiated or there is an intention to differentiate." In fact, as we are informed, Mr. Matsas has called for today an extraordinary session of the Executive Committee of the SEC which will take decisions under the new conditions of the minimum wage.
Source: brief.com.cy