INDUSTRIAL RELATIONS IN
CYPRUS
DEPARTMENT OF LABOUR RELATIONS
MINISTRY OF LABOUR AND SOCIAL INSURANCE
VOLUNTARY SYSTEM OF INDUSTRIAL RELATIONS
BASED ON THE ILO GUIDELINES FOR SOCIAL
DIALOGUE
ENABLING FACTORS FOR A SUCCESSFUL VOLUNTARY SYSTEM
STRONG, INDEPENDENT WORKERS’AND EMPLOYERS’
ORGANISATIONS WITH THE NECESSARY ORGANISATIONAL AND
TECHNICAL CAPACITY.
POLITICAL WILL AND COMMITMENT OF SOCIAL PARTNERS
(EMPLOYERS, EMPLOYEES AND GOVERNMENT) TO FREELY
ENGAGE IN SOCIAL DIALOGUE AND TO RESPECT VOLUNTARY
AGREEMENTS ON CONFLICT RESOLUTION MECHANISMS
RESPECT FOR THE FUNDAMENTAL RIGHTS OF FREEDOM OF
ASSOCIATION AND COLLECTIVE BARGAINING
APPROPRIATE INSTITUTIONAL SUPPORT
HIGH UNIONIZATION RATES HAVE ASSISTED IN
THE SUCCESS OF THE VOLUNTARY SYSTEM
UNIONIZATION RATE
APPROX. 68%
41% (74000 EMPL) COVERED BY SECTORAL COLLECTIVE AGREEMENTS
6% (10000 EMPL) COVERED BY AGREEMENTS IN THE SEMI-GOVERNMENT
SECTOR
25% (45000 EMPL) COVERED BY COMPANY LEVEL COLLECTIVE AGREEMENTS
17% (33000 EMPL) EMPLOYED IN THE PUBLIC SECTOR
REMAINING 11% (20000 EMPL) NOT COVERED BY COLLECTIVE AGREEMENTS
FREEDOM OF ASSOCIATION – ARTICLE 21 OF THE CONSTITUTION
• the Trade Union Laws of 1965 to 1996,
• ILO Convention 87 (Freedom of Association and the Right to Organise)
• ILO Convention 98 (Right to Organise and Collective Bargaining)
• The European Social Charter (Article 5) - The Right to Organise
THE RIGHT TO COLLECTIVE BARGAINING - ARTICLE 26 OF THE CONSTITUTION
Refers to the possibility for legislation to "provide for collective labour contracts". BUT no specific reference
is made to collective bargaining. DESPITE THIS

ILO Convention No.98 (Right to Organise and Collective Bargaining Convention)

ILO Convention No. 154 (Collective Bargaining Convention)

The European Social Charter (Article 6) - The Right to Bargain Collectively
THE RIGHT TO STRIKE - ARTICLE 27 OF THE CONSTITUTION
"1. The right to strike is recognised and its exercise may be regulated by law for the purposes only of
safeguarding the security of the Republic or the constitutional order or the public order or the public
safety or the maintenance of supplies and services essential to the life of the inhabitants or the
protection of the rights and liberties guaranteed by this Constitution to any person.
2. The members of the armed forces, of the police and of the gendarmerie shall not have the right to
strike. A law may extend such prohibition to the members of the public service."
GENERAL CHARACTERISTICS
LABOUR LEGISLATION SAFEGUARDS EMPLOYEE RIGHTS MAINLY
WITH REGARDS TO THE PROVISIONS OF EU LABOUR DIRECTIVES.
ENFORCEMENT OF LABOUR LEGISLATION IS ACHIEVED BY LABOUR
INSPECTION. THE COMPETENT COURT FOR EXAMINING ANY
CONTRAVENTIONS IS THE LABOUR DISPUTES COURT.
EU CITIZENS WORKING IN CYPRUS ARE GUARANTEED EQUAL TERMS
& CONDITIONS OF EMPLOYMENT AS PROVIDED FOR IN COLLECTIVE
AGREEMENTS IN ACCORDANCE WITH EU REGULATION 1612/68/EEC.
A MINIMUM WAGE EXISTS ONLY FOR CERTAIN VULNERABLE GROUPS
OF WORKERS, WHO ARE CHARACTERISED BY WEAK OR NON
EXISTENT BARGAINING POWER (CLERKS, SHOP ASSISTANTS, CHILDCARE WORKERS, & PERSONAL CARE WORKERS)
BUT TO A LARGE EXTENT TERMS AND CONDITIONS OF EMPLOYMENT
ARE DETERMINED FREELY BY THE USE OF COLLECTIVE BARGAINING
AND THE SIGNING OF COLLECTIVE AGREEMENTS
GENERAL CHARACTERISTICS OF COLLECTIVE AGREEMENTS
 NOT LEGALLY ENFORCEABLE WHICH MEANS THAT DISPUTES ARISING
FROM THEIR VIOLATION CANNOT BE SETTLED IN THE LABOUR DISPUTES
COURT

NO OFFICIAL EXTENSION MECHANISMS EXIST
CONTENT OF COLLECTIVE AGREEMENTS

USUALLY 2 – 3 YEARS DURATION OF AGREEMENTS






COST OF LIVING ALLOWANCE (C.O.L.A)
13TH & IN SOME CASES 14TH SALARY
RATES OF PAY & ALLOWANCES FOR OVERTIME AND SHIFT-WORK
PROVIDENT FUND – MEDICAL FUND – WELFARE FUND
ANNUAL LEAVE – WEEKLY HOURS OF WORK
ANY OTHER ARRANGEMENT THAT HAS BEEN AGREED BETWEEN THE
EMPLOYER AND THE TRADE UNIONS
CONFLICT RESOLUTION IN CYPRUS IS
GOVERNED BY THE
INDUSTRIAL RELATIONS CODE
 GENTLEMEN’S AGREEMENT SIGNED BY THE SOCIAL
PARTNERS IN 1977
 GOVERNS CONFLICT RESOLUTION MECHANISMS IN
THE PRIVATE AND SEMI-GOVERNMENT SECTORS
 LAYS OUT PROCEDURES FOR MEDIATION, ARBITRATION
AND PUBLIC INQUIRY
 LAYS OUT SPECIFIC PROCEDURES FOR THE
SETTLEMENT OF “DISPUTES OVER INTERESTS” AND
“DISPUTES OVER RIGHTS”
PROCEDURE FOR THE SETTLEMENT OF DISPUTES OVER INTERESTS,
ACCORDING TO THE INDUSTRIAL RELATIONS CODE
DIRECT NEGOTIATIONS FOR THE CONCLUSION OF A NEW COLLECTIVE AGREEMENT
OR FOR THE RENEWAL OF AN EXISTING COLLECTIVE AGREEMENT
DEADLOCK
AFTER THE REQUEST OF EITHER SIDE THE DISPUTE IS REFERRED TO THE LABOUR RELATIONS
DEPARTMENT (MEDIATION SERVICE) OF THE MINISTRY OF LABOUR AND SOCIAL INSURANCE
CASE ASSIGNED TO MEDIATOR
TRADE UNION
REPRESENTATIVES
NEGOTIATIONS
MEDIATION
AGREEMENT ACHIEVED
LABOUR DISPUTE
RESOLVED
EMPLOYER OR EMPLOYERS'
ORGANISATION /
ASSOCIATION
REPRESENTATIVES
Referred Back to Direct Negotiations.
OR
NO AGREEMENT
ACHIEVED
INDUSTRIAL ACTION MAY BE
TAKEN BY EITHER SIDE AFTER A
10 DAY NOTICE PERIOD
Binding Arbitration
(Both sides must Agree) OR
Public Inquiry
(Both sides must Agree) OR
DEADLOCK DECLARED
PROCEDURES FOR THE SETTLEMENT OF DISPUTES OVER RIGHTS
ACCORDING TO THE INDUSTRIAL RELATIONS CODE
"Dispute over Rights", means a dispute arising from the interpretation and/or implementation of an
existing collective agreement, or of existing conditions of employment, or arising from a personal
complaint including a complaint over a dismissal.
INTERPRETATION OR IMPLEMENTATION OF
EXISTING COLLECTIVE AGREEMENT
Grievance should be presented to the employer by the
union in writing.
If the complaint is not settled or if the complaint is of
such nature that direct discussions between the
employee and his supervisor is not considered
appropriate, the employee has the right to demand that
his complaint may be examined at one or more higher
levels, depending on the nature of the complaint, and
the structure and size of the undertaking
SUBMISSION OF
DISPUTE FOR
MEDIATION
IF NOT
SETTLED
SETTLEMENT
WITHIN 15
DAYS
PERSONAL COMPLAINTS
The complaint should be presented
in the first instance by the employee
to his immediate supervisor.
BINDING
ARBITRATION
A settlement of a personal complaint achieved at the
above stages may be challenged by the employers' or
workers' organisations which are signatories to the
relevant collective agreement as being contrary to the
provisions of the said agreement, in which case .....
LABOUR DISPUTES SUBMITTED FOR MEDIATION
500
450
400
350
300
250
200
150
100
50
0
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
STRIKES IN CYPRUS
60
50
40
30
20
10
0
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
WORKDAYS LOST DUE TO STRIKES
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
MORE INFO CAN BE FOUND ON OUR WEBSITE
http://www.mlsi.gov.cy/dlr