Filenews 27 March 2022 - by Pambos Charalambous
At its peak is the problem of the shortage of labour for Cypriot businesses, due to the pandemic and the growth rate of Cyprus. Insider opens the file of staff shortage in Cyprus and records the positions of those directly affected.
In the strongest possible way, the pandemic highlighted the pre-existing problem of the lack of human resources in Cyprus, which aggravated the situation, especially in the tourism sector. Officials and professionals of the sector see as the only solution the granting of work permits to people from third countries and asylum seekers, while after Russia's invasion of Ukraine at the table of discussion, there is also a question of covering the needs with the employment of Ukrainian refugees.
OEB
The problem of the lack of human resources in some sectors, especially in technical professions, existed even before the outbreak of the pandemic, despite timeless efforts to meet the needs. The pandemic has also created opportunities that in turn have brought the need for unskilled personnel, in areas such as distribution (due to the transition from physical sales to digital ones). At the same time, during the pandemic, a large number of European citizens were repatriated, due to the restrictions or new opportunities they found, especially in Central European countries, where there were needs for human resources.
The above, along with the increase of beds in tourism, the development of Forex companies, the de-icing of projects, which were stopped by the pandemic, such as the Limassol casino and generally the growth that Cyprus is experiencing, led to the current problem, explained to Insider the Director of Labour Relations & Social Policy of OEB, Lena Panayiotou, noting that, without the pandemic, the problem might have been the same but in a different size, since it would be dealt with more gradually.
According to Mrs Panayiotou, for the tourism sector, which is facing the biggest problem, there will be needs to cover more than 7,000 jobs, in case all hotels open normally. There are also great needs for technical professions which are mainly associated with similar work of the construction industry (e.g. carpentry and metallurgical industries). In addition, there is a big problem for nursing staff, with the private sector having needs to fill more than 250 jobs. Also, the retail sector (distribution, warehouses) has high needs for staff.
These are positions which, as he told us, can hardly be filled by Cypriots, as it is now proven that there are no unemployed people available, as was also shown by the low turnout in the interviews of unemployed people that took place recently - only one third of the unemployed from the hotel sector came to the interviews.
Although the hotel, catering and retail sectors are covered by specialised legislation and very specific terms of employment, the seven-day working base seems to be a deterrent to attracting staff. In order to address the problem, OEB considers that the right to work of persons (students) from third countries and asylum seekers, who are allowed to work only in a limited number of positions and in specific sectors of economic activity, should be extended to all sectors. "It is not the solution but it is a way to reduce the problem", Mrs. Panayiotou told us. In the long term, OEB has firm recommendations, considering that ways must be found to link education with the real needs of the labour market.
As we have been mentioned, investments have already been suspended due to lack of staff, which means that businesses themselves and the economy in general will be affected.
CCCI
On his part, the Director of the Department of Labour Relations of the CCCI, Emilios Michael, told us that the growth rate of Cyprus has caused a shortage of human resources in many professions and especially in the hotel industry and that the demands of businesses for capacity from third countries must be met, since there is no available capacity from Cyprus or EU countries, to manage to survive.
At this point he wanted to clarify that the reports of cheap labour from third countries do not hold water, since, as he said, foreign workers have a higher cost to employers. On this point, he explained that employers in order to obtain a foreigner's employment permit must present his contract, which is required to include the terms of employment that Cypriots also have, with employers bearing at the same time the transport costs, as well as the stay and maintenance of the foreign employee.
Mr. Michael expressed his optimism that after the disappointing image in the recruitment workshops for the hotel units, the Minister of Labour will open the window for the employment of staff from third countries, expressing the hope that this will be done before April 1st. Otherwise we will reach the point where we have tourism but not have hotel units to accommodate it, as he pointed out, clarifying that today students from third countries are allowed to work only as kitchen assistants and cleaners and not as waiters or in other positions. After two years of serious crisis there is a prospect for the development of the economy, Mr. Michael told us, noting that tourist bookings until the invasion of Ukraine had reached the level of 2019, i.e. at the pre-pandemic level.
PASYXE
The problem in hotels is particularly big, as the lack of human resources and specifically in positions such as waiters, kitchen and reception assistants and maids, touches almost all hotel units. According to the General Manager of the Pancyprian Hoteliers Association (PASYXE), Filokyros Rousounidis, this is a pan-European and global problem in the hotel sector, with EU countries recording the lack of human resources in the main challenges that their hotels have to face, along with the pandemic and the Ukrainian one. Bringing the examples of France and Spain, he added to Insider that, in cases such as the pandemic or a war, the tourism industry is the first to be affected and to the greatest extent.
As he explained, the gap in Cyprus was created due to the pandemic, which opened the door of return for many Europeans to their countries, given that the problem exists in other countries and therefore European workers have the opportunity to be employed in their home countries, at a time when the cost of living in Cyprus is increased.
At the same time, a small portion of our compatriots who worked in the tourism industry, due to the uncertainty in the sector and the big blow it received, preferred to turn to other sectors of the economy, which are not affected to the same extent as hotels in times like the pandemic.
We believe that there are thousands of vacancies that need to be filled and it is very important that this is done as soon as possible, he pointed out. "We exhausted all available ways to hire Cypriots and Europeans in our hotels before the start of the summer season," Mr. Rousounidis said, referring to the interviews of unemployed people that took place, which had a disappointing result. The last resort, which for us is not the best possible because it is both time consuming and costly, is the import of foreign labour from third countries where there is an appropriate need and in accordance with the provisions of the laws, noted the General Director of PASYXE, explaining that in this way the units will be staffed, even with a temporary solution, which will allow them to meet the requirements and expectations of tourists, who will choose Cyprus for their holidays.
Referring to the importance of this year, he told us that it is transitional for the tourist industry of the country, that many countries competing with us will be repositioned for tourism this year and that we must respond to the challenge, as otherwise we will have negative consequences for the coming years, in terms of tourist inflows, which will also affect public finances, but also the people who already work in the industry. Every day that passes complicates the situation, warned Mr. Rousounidis, calling for immediate solutions, since, as he noted, some markets, such as Great Britain, seem to open even from mid-March.
Regarding the lack of staff in the hotels and the consequences for the tourism industry from the Ukrainian, the General Manager of PASYXE was clear saying that, there is no question of reducing the need for staff, since, as he added, even in cases of reduced tourist inputs the needs of a hotel unit remain the same and are not affected, due to its 24-hour operation.
STEPK
According to the General Director of the Association of Cyprus Tourism Enterprises, Chrysaimilis Psilogenis, after the last meeting of the Advisory Technical Committee, which consists of representatives of the Ministry of Labour, the employers' associations and the trade unions and while the interviews for the recruitment of unemployed people in hotels in Paphos and Limassol had preceded it, it has been decided to grant licenses to hotels for employing staff from third countries and now the The Minister of Labour is called upon to determine what these hotels will be, but also the number of permits that will be granted to each hotel.
At the same time, Ms Psilogeni also referred to the window opened by the EU for the employment of Ukrainian refugees, following her decision to grant temporary protection to those fleeing the war in Ukraine. With the status of "temporary protection", Ukrainian citizens will have a residence permit in the EU, and therefore in Cyprus, and access to its education, healthcare and labour market, avoiding the time-consuming asylum application process. This scheme will be valid for one year, with the possibility of extending it for one plus one more years (a total of three years). Surely, we do not know how many of them will come to Cyprus, she noted.
Regarding the impact that the war in Ukraine will have on the tourist inflows of Cyprus, he wanted to make it clear that any reduction in tourists does not change the data and the staffing needs of hotels, which need a certain number of workers, whether they work with their highest occupancy or with lower occupancy. "It is difficult to make up for the blow, but efforts are being made," he concluded.
PASIKA
We have exhausted all the margins, with efforts to employ local staff, community and students, so the recommendation is to allow, under certain conditions, the employment of staff from third countries without this endangering the jobs that concern Cypriots and Community, the general secretary of the Association of Owners of Recreation Centres (PASIKA) told us on his part, Phanos Leventis, adding that, after the invasion of Ukraine, the situation changes.
"If we do not manage to make up for the number of tourists we are likely to lose to Russia and Ukraine we will have to think about and manage in a different way the issue of the personnel required in the industry," Mr. Leventis said, explaining that this may mean reduced staffing needs or a delay in the need for staff. The Deputy Ministry of Tourism is attempting to make up for lost ground by opening up to other markets and granting incentives to airlines, he further noted and expressed the position that Cyprus could employ Ukrainian refugees.
What PASIKA wants, as he said, is for the hotel industry and the leisure centre industry to be able to offer high quality services, since, as he admitted, the lack of staff and the recruitment of people with reduced experience is affecting the level of services offered by the leisure centre industry.
Asked about what is the number of staff needed for the needs of the recreation centres, he explained that no specific number can be given, since most owners of recreation centres prefer to look for staff themselves, with advertisements, than to declare their needs to the Department of Labour. The problem for the recreation centres is big, however, since, "as long as there is a problem in the hotel industry, it draws staff from the recreation centres", while as the City of Dreams Mediterranean added, it will absorb a very large number of staff, which comes from their own space.
ENTERTAINMENT CENTERS
"The problem in our sector is timeless and as soon as we return to normality this will be bigger", said the President of the Association of Entertainment Center Owners, Nikos Vassiliou, focusing on the lack of staff in the kitchen and customer service.
He believes that, as in Greece, the Greek expatriates of Ukraine and specifically of Mariupol should be exploited, as they could become an excellent staff for Cyprus, due to the fact that they speak Greek, but they are also educated. This is something that he confirmed himself, through a visit he had made to Marioupoli, after which some expatriates had come to Cyprus and were employed in some hotels.
As far as political asylum seekers are concerned, he expressed the view that they should be used in the labour market, as is the case in countries such as Germany. At the same time, for the permits for specialized personnel, he said that they should be given immediately while on the contrary for auxiliary personnel that locals should be utilized, the second choice should be the expatriates from Ukraine and the other options to follow.
TEC
The General Secretary of SEK, Andreas Matsas, spoke of exaggeration regarding the human resources needs of businesses, saying that the surrounding atmosphere does not correspond to real needs and that it is for this reason that for the SEK, the granting of employment permits for staff from third countries should be the last resort.
The TEC considers that the crisis in Ukraine should also be taken into account in this regard, "which creates new facts and new risks in relation to the real needs that will exist in the coming period. So it should also be clarified from the side of the Deputy Ministry of Tourism what are their indications for the tourist product".
About 50% of our tourism comes from Russia and Ukraine, notes SEK, which as it says, means that a significant number of these tourists will not come to Cyprus. The devaluation of the rouble and generally the conditions that have been created in connection with the unpredictability of the duration of the crisis are the factors that according to Mr. Matsas translate into the loss of a significant part of our tourist market.
He warned that we should not go so far as to create jobs that are not needed, with the TEC opposing uncontrolled and undocumented licensing, expressing fear of creating conditions for cheap labour.
However, in cases where such licenses will be granted, the SEK underlines that the provisions of the collective agreement and legislation should be applied and that there should be no dismissals of employees from these enterprises. "We are not demonising the complementary strengthening of the labour market," Mr. Matsas told us, adding that the goal is to give help where there is a truly documented need.
