Government signs agreement with civil servants' trade union
Minister of Finance Harris Georgiades and General Secretary of the Pancyprian Public Servants` Trade Union (PASY-DY), Glafkos Hadjipetrou signed on Monday the framework agreement for the years 2017-2018.
In statements after the signing ceremony, the Minister said the agreement ensures the sustainability of public finances, while Hadjipetrou noted that the trade union is satisfied with the agreement which was the product of social dialogue.
The agreement provides for the introduction of a mechanism through which the percentage increase in salary costs will not exceed the rate of GDP growth.
They also agreed to promote a bill that would indefinitely extend the freeze on new positions, while excluding the freezing of promotions. The Minister pointed out that any need for new positions will be closely assessed and ratified by the House of Representatives.
He also noted that until the end of 2016 the number of civil servants dropped by 4,100 compared to 2012.
In addition, bearing in mind the significant savings in 2015 (26 million euro) as regards overtime and shift allowances, the Ministry agreed to a partial improvement in the method of calculating for overtime and shift allowances, with a financial impact of approximately 5.5 million euro.