Cyprus faces disruption as unions strike for automatic inflation adjustment

Cyprus faces a nationwide three-hour strike from 11 am to 2 pm on Wednesday as unions demand the reintroduction of automatic inflation adjustments after failing to reach an agreement with employers and government mediators.

Trade unions representing public and private sector workers called the strike to pressure for the restoration of Automatic Tariff Adjustment (ATA) provisions that compensate employees for inflation-driven price increases.

The ATA mechanism, once standard in collective labour agreements, has largely disappeared during Cyprus' economic crisis as employers shifted to individual contracts.

More than 50 flights affecting 15,000 passengers face disruption at Cyprus airports, while hospitals will operate with skeleton security staff and cancel non-emergency surgeries and patient appointments. All public services, including citizen service centres, will close during the strike period.

Public transport will halt operations, forcing police to implement traffic management plans across all provinces.

Workers from SEK, PEO, PASYDY and DEOK unions will hold simultaneous rallies at government buildings in Nicosia, Limassol, Larnaca, Paralimni and Paphos at noon.

The ATA provision requires employers to cover wage increases matching inflation rates. Under the system, if an employee needed €150 in 2025 to buy goods that cost €100 in 2024, employers would pay the €50 difference.

The Cypriot government proposed a compromise allowing ATA implementation across public and private sectors, but with cost-limiting scales and clauses for companies.

Neither unions nor employers accepted the last-minute proposal, with both sides refusing to compromise.

Cyprus eliminated most collective bargaining agreements during its financial crisis, leaving workers vulnerable to inflation without automatic compensation mechanisms.

Union leaders argue the strike represents workers' final attempt to restore purchasing power protection.