Filenews 11 February 2026 - by Angelos Angelodimou
The issue of labour shortages in various sectors of the economy comes to the fore once again, resulting in a new issue regarding the recruitment of foreign workers.
And this is where the great confrontation between employers and trade unions arises. On the one hand, the employer side emphasizes that in our country there are conditions of full employment and therefore there is no available workforce. On the other hand, the unions note that the employers have violated the agreement regarding the hiring of foreign workers from third countries.
At the same time, on the part of the unions, there was talk of practices that do not seem to be in line with the relevant agreement, such as the hiring of foreign workers from third countries, through subsidiaries that are created and which are then channelled to the parent company, without this being allowed, it is noted.
The... Last year's framework
It is recalled that the Council of Ministers approved on February 19, 2025 the new "Framework for the Employment of Foreign Workers". Among other things, the framework provided:
(a) Updating the list of occupations in which, due to a documented shortage of domestic staff, an increased employment quota of foreign workers may be applied.
(b) Provision of the possibility of mobility of employees for placement in premises of the same employer at the provincial level. At the same time, the possibility of submitting a request for limited mobility of employees for placement in premises of the same employer at a national level is provided.
(c) The living conditions of foreign workers are upgraded by introducing specific criteria, combined with the increase of the maximum percentage of deduction from the employee's gross basic earnings for housing purposes from 10% to 25%, provided that the accommodation areas meet the specified criteria.
What the CCCI asked for
Yesterday, the members of the Board of Directors of the CCCI had a meeting with the Minister of Labour Marinos Mousiouttas, to whom they explained the serious shortages of the workforce in all sectors of economic activity of the country, which create serious problems in the smooth operation of businesses and, by extension, in their competitiveness.
More specifically, the members of the Board of Directors of the CCCI noted that based on the latest data on the labour market where the employment rate reached 79.85% and the reduction of unemployment to 5%, they show that in Cyprus there are conditions of full employment, creating a huge shortage of labour.
Therefore, the CCCI adds, in order to meet the needs of businesses, administrations inevitably turn to foreign resources. As it has been said, the granting of import licenses to foreign labour should continue and at the same time it is necessary to modernize the criteria for granting licenses, in such a way that the current conditions are taken seriously into account. At the same time, the CCCI stressed that students can work without restrictions in all professions as is the case in other European countries.
Trade union protests
It is recalled that for a long time the trade unions have been calling for the issue of hiring foreign workers from third countries to be discussed again, as they argue that the agreement reached by the two sides has been violated by the employers to a large extent.
Among other things, in his recent statements to "F", the General Secretary of SEK, Andreas Matsas, had argued that this method used by some businesses is a very serious issue, which must be immediately put under the microscope of the competent authorities.
And for a pension
It is noted that in addition to the issue of foreign workers, the CCCI raised the issue of pension reform with the Minister of Labour.
"The Chamber seeks to form a system that is socially just, long-term sustainable and compatible with the needs and resilience of the Cypriot economy. The reform under discussion is a deep structural intervention, with significant social, economic and fiscal implications. Therefore, it requires an evidence-based approach, a clear cost assessment and full transparency, so that the changes do not impose disproportionate burdens on the real economy." The CCCI, he noted, supports the rationalization of the system, provided that the reform remains transparent, fiscally prudent and socially targeted, without jeopardizing the viability of the Social Insurance Fund and future derailment of increases in contributions.
