Social dialogue and conflict resolution

Kranj, 31 March - 2 April 2004 Kokra Hotel (Brdo Estate) Kranj, Slovenia

National development project - Cyprus

by Orestis Messios

Enhancement of existing conflict resolution mechanisms for disputes over interests in essential services

Introduction

The issue of adequately regulating the settlement of labour disputes in essential services has remained at the forefront of talks amongst the social partners for over ten years now.

The situation in Cyprus as regards the settlement of labour disputes in essential services, is currently governed by the provisions of the Industrial Relations Code. Whilst the Code, lays out procedures for the settlement of labour disputes in general, it does not include specific arrangements for disputes in essential services. According to legislation in force, the Supplies and Services (Transitional Powers)(Continuation) Law, Chap. 175A, authorizes the recourse to the Defense Regulations 79A and 79B, and to the utilisation of the Essential Services Order of 1943. The Defense Regulations empower the public authorities to prohibit strikes and to direct any person to work, in order to ensure the attainment of a wide number of purposes. Even though the Defense Regulations have rarely been used, it remains that their existence causes compatibility problems with ILO Standards and Principles and with the European Social Charter. In particular compatibility problems arise with respect to the Abolition of Forced Labour Convention (N. 105) and the Freedom of Association and Protection of the Right to Organise Convention (N. 87), which have both been ratified by Cyprus. Furthermore, the existence of the Essential Services Order of 1943 and the Defense Regulations provide the Government with unlimited powers to force workers to show up at work which can initially be viewed as a violation of Article 6(4) of the European Social Charter which affirms "the right of workers and employers to collective action in cases of conflicts of interest, including the right to strike, subject to obligations that might arise out of collective agreements previously entered into" It is expected that the Government of Cyprus will soon withdraw the abovementioned Regulations, since in practice they have rarely been used, and at the same time there is no intention by the Government to actually use them. Furthermore, any agreement signed amongst the social partners, will most probably explicitly mention the social partners' acceptance of the withdrawal of the forementioned legislation.

Historical Background

In an attempt to resolve the issue of strikes in essential services, the previous Government decided on regulating the issue through the enactment of specific legislation. On 04.01.1995 the Government submitted to the House of Representatives, the Essential Services (Prevention of Strikes and Referral of Disputes to Arbitration) Draft Legislation of 1995, prepared by the Attorney General by order of the Council of Ministers. It should be noted that the trade unions SEK, PEO and PASYDY, strongly opposed this development, remaining steadfast to their position that the regulation of strikes in essential services should be achieved through non-legislative measures. Consequently, due to trade union opposition, the matter was referred to a Ministerial Committee for further examination, and to hold talks with the trade union side to resolve the issue. Further to the above developments the Ministry of Labour undertook, after the request of the Trade Unions, to call in an ILO expert to examine whether the abovementioned draft legislation was in accordance with international labour standards, and to also look into the principle methods by which the issue was regulated in other countries. As a result of this study, the Ministry of Labour went forward with a number of amendments to the draft legislation, but still, even though the trade union side accepted that the amended draft legislation was significantly improved, it upheld its strong opposition to the enforcement of any such legislation.

In September 1999, after 4 years of talks, the three trade unions (SEK, PEO, PASYDY) and the employers' organisation OEB submitted to the Ministerial Committee, a voluntary agreement for the settlement of labour disputes in essential services. This voluntary agreement was the result of negotiations held between the abovementioned social partners, and as they stated was to be an extension of the Industrial Relations Code. Further to this, the involved parties stated their willingness to discuss legislative measures in specific areas, after the withdrawal of the Defense Regulations. In continuation to this development, and in an effort to deal with the opposition from the Chamber of Commerce and Industry, which kept insisting on the legislative regulation of the issue, the Ministry of Labour prepared a third draft law, combining legislative measures with the submitted voluntary agreement. Even this third effort still found strong opposition from the trade unions and consequently on the 19th of October 2000 the Minister of Labour declared that the Ministerial Committee talks with the trade unions had officially ended in a deadlock.

In a final effort by the previous Government, the Council of Ministers, on 03.04.2002 decided to submit the draft legislation/agreement, to the House of Representatives to be enacted. Even so the issue remained unresolved until the present Government decided, in April 2003, to withdraw the draft legislation after a relevant decision of the Council of Ministers. The new Government's policy, as laid out in its pre-election programme, is to promote the regulation of strikes in essential services, through consensus achieved by means of a voluntary agreement, which is in line with the Council of Ministers decision to withdraw from the House of Representatives the pre-existing draft legislation.

From the above historical overview it becomes clear that social partners have examined the issue of strikes in essential services extensively. This groundwork should be considered as an underlying strength in the efforts to successfully implement the National development project, agreed amongst the social partners in Prague, during the European Foundation's workshop on Social Dialogue and Conflict Resolution.

In detail the participating Social Partners unanimously agreed on the following National development project:

WHAT?

Enhancement of existing conflict resolution mechanisms for disputes over interests in essential services.

WHY?

The lack of any operating legislative framework, regulating the right to strike in general, which has had the result of strikes and the threat to strike in essential services, to be considered as the most acute problem in industrial relations over the last decade.

WHEN?

The soonest, and if possible prior to accession on the 1st of May 2004.

WHO?

The Social Partners. Namely trade unions, employers' organisations, and the Government.

WHERE?

High-Level Tripartite Discussions and Collaboration. On the basis of the progress achieved on the subject, the Ministry of Labour and Social Insurance has to play an increased coordinating role in achieving a final consensus on the issue.

WHICH?

Goodwill of Social Partners
On the basis of prior experience, and the discussions held between the social partners for the regulation of the issue, it is clear that the most important factor in the achievement of the National development project is the willingness of all the social partners to reach a mutually acceptable agreement. This is central to the success of any voluntary agreement, which remains the main characteristic of the industrial relations system in Cyprus. It is expected that the high level of responsibility shown by social partners in relation to the implementation of voluntary agreements in the area of industrial relations, provides a strong basis for the success of any agreement signed. This of course is valid only if it is assumed that all the main principles upheld by the social partners are satisfied.