The weakening of unions is the result of a series of changes that accumulated over a decade.
Cyprus is among the European Union countries with traditionally strong trade union representation, although labour union density has declined significantly in recent decades, with pressure more intense in the private sector and in services. At the same time, the European Union, through the Directive on adequate minimum wages (2022/2041), has set a target for 80% of workers to be covered by collective bargaining.
In Cyprus, the weakening of collectivism is reflected in the erosion of unions’ influence, bargaining power and public image. It is the result of a sequence of changes that accumulated over a decade. The 2013 crisis acted as a catalyst, shaping a new framework of fear and bargaining pressure, while at the same time opening the way for more flexible, but also more precarious, labour practices.
In this environment, the spread of individual contracts strengthened the individualisation of work, weakening in practice the idea of collective protection. At the same time, the shift of the economy towards services, with increased labour mobility, made organisation more difficult and trade union presence less visible, and for some less necessary.
The trust gap
The 2013 economic crisis is regarded by many as a turning point in the modern history of the trade union movement. Nikos Loizides, Vice-President of the “Isotita” Union, believes that period left a deep imprint: “In 2013 the unions accepted everything concerning workers so that not the state, but the banks, would not collapse. That created doubts about the motives of the unions.”
The acceptance of cuts, the freezing of benefits and the restriction of the cost-of-living allowance during a period of general insecurity created, according to union representatives, a climate of distrust that has not been fully restored. The loss of a 13th and 14th salary in several sectors, the shrinking of provident funds and the reduction in purchasing power contributed to a sense that collective gains are not guaranteed.
The individualisation of work
A central axis of the weakening is the dominance of individual contracts.
Giorgos Frangos, President of the Cyprus Union of Journalists (ESK), speaks of a “slow-burning bomb undermining labour relations”: “The individual contract individualises each worker and leaves them alone facing the employer.” He underlines that the collective agreement “prevails over the individual contract both legislatively and institutionally”, yet in practice it is often bypassed.
Soteroula Charalambous, General Secretary of the Pancyprian Federation of Labour (PEO), places the issue on a longer-term basis. As she notes, even before 2013 “the mechanisms used by employers and mainly personal contracts” operated outside the framework of collective agreements. Following the accession of EU workers, in several cases individual contracts were granted outside collective arrangements, gradually disconnecting recruitment from collective coverage.
During the crisis period, as she describes, the balance of power shifted. In an environment of insecurity and unemployment, pressure on workers became more direct: “If you want a job here, there are no unions.” Negotiation moved from the collective to the individual level, and the individualisation of the employment relationship was no longer the exception but increasingly the rule.
Through this individualisation, a new labour culture is formed, where claims shift from collective to individual and negotiation moves from organised discussions to personal agreements.
New forms of work
The structure of the Cypriot economy has changed significantly, with a marked shift towards services and a high proportion of small and family businesses. In these sectors, union organisation is more difficult.
Ms Charalambous notes that in the services sector “pressure is exercised to prevent workers from being organised”, particularly in retail and catering chains.
In this context, the spread of remote work and the strengthening of digital structures substantially alter the terrain on which trade unionism develops. Small groups of workers often operate remotely, without a shared physical workplace. The dispersion of work into digital space and the simultaneous increase in freelancers and workers with multiple employers make collective organisation and mobilisation more complex.
At the same time, labour market mobility, particularly in lower wage brackets, acts as a release valve: workers move from company to company seeking better conditions rather than investing in long-term collective claims.
Political management and public image
A significant factor is also the public image of trade unions. Mr Loizides stresses that “the executive power is trying to turn public opinion against the unions”, particularly on issues such as the cost-of-living allowance and the minimum wage. He speaks of cooperation between the executive authority and employers’ organisations which, in his view, weakens the bargaining position of workers.
From the PEO side, there is reference to the “cultivation of a climate of devaluation of the organised, the collective” and an attempt to divide workers into “privileged and non-privileged”, particularly during discussions on the cost-of-living allowance.
Mr Frangos adds another factor: the loss of the “power of example”. As he states, younger generations did not grow up professionally alongside older trade unionists to experience the daily practice of unionism. At the same time, the question “do you belong to a union?” during recruitment processes creates, he says, a climate of fear.
Institutional protection
A common denominator is the need for institutional support for collective bargaining.
Ms Charalambous stresses that without active state intervention “the freedom of the worker to organise… is fictitious”. She raises the issue of union access to workplaces and the effective implementation of collective agreements.
From the ESK side, it is emphasised that “there is no substitute for the collective form of struggle”, yet at the same time, without institutional and economic incentives, the weakening is difficult to halt.
A balance overturned
The balance between the organised power of workers and employers has effectively been overturned. Employers have utilised new tools and forms of work organisation, while the trade union movement has found itself adapting to a rapidly changing environment.
The weakening is the product of economic crisis, institutional deficits, changes in the labour market and shifts in social perceptions. The question that remains open is whether, through European pressure and internal restructuring, stronger collective representation can return in an economy that is changing faster than its institutions.