CYPRUS
A decision by the Cypriot Supreme Court to immediately restore Public Service pay salaries cut in 2012 would be a serious blow to the nation’s economy, Minister for Finance, Harris Georgiades (pictured) has warned.
“If the demand is to restore salaries now, we will have a problem,” Mr Georgiades said.
“There will be an impact involving hundreds of millions of euros.”
He said the Government had a “Plan B” if this occurred but declined to discuss details in public pending the court case, adding that party leaders had been informed of what such a decision involved.
The Supreme Court is currently considering the state’s appeals against the Administrative Court’s decisions on Public Service salaries.
In its 29 March decisions, the Administrative Court ruled that a freeze on incremental pay rises and a 3 per cent contribution to pensions — and a reduction in PS employees’ pay were in violation of Article 23 of the Constitution regarding the protection of the right to property.
The judgement applied to PS staff as well as those employed in the broader public sector, such as in semi-Governmental organisations.
Under the ruling, the pay reductions were deemed null and void and the applicants entitled to compensation, effective immediately.
Various estimates have been floated for how much the decisions might cost the Government should the Administrative Court’s ruling be upheld and the affected PS employees compensated.
The decisions came at a time when the Government had already begun to gradually reverse austerity-driven cuts.
In a separate development, representatives of the Ministry of Health, State Health Services and the public sector union, Pasyki are seeking ways to tackle the shortage of doctors in hospital emergency departments.
Pasyki has painted a picture of overworked, tired doctors having to deal with serious cases where mistakes could easily be made.
One possibility that has been floated is a recruitment drive in neighbouring Greece.
Nicosia, 28 September 2019
