Hoteliers were given a stern dressing down at their own general meeting from President Christofias who accused them of sacking Cypriots for cheaper EU labour.
After talking up to prospects for the tourism industry, the President rounded on hoteliers to admonish such “unacceptable behaviour” which he personally felt `strongly` about.
“I`m referring to the sacking of Cypriots for various reasons and the hiring of mainly workers from the European Union in their place on much lower wages and benefits.”
Since the 2009 recession the dole queues have swelled with hundreds of Cypriot hotel staff made redundant.
Unions claim they are being victimised as hotel owners seek to fly in cheaper labour from other European countries. It is argued these people are exploited because they are not protected by unions or a collective agreement, unlike their Cypriot colleaques.
“I am not against the hiring of EU nationals but to give them lower wages and benefits is absolutely intolerable,” said Christofias.
He told the Cyprus Hotels Association (CHA) 75th annual general meeting that the government always listened favourably to their demands but putting Cypriots out of work was a big mistake.
“We are trying to reduce unemployment, but at the end of the day unemployment is rising. This situation cannot continue.”
Furthermore there was an open threat to hotels that if they kept squeezing Cypriots out then the government would resort to taking the “necessary steps” through parliament to enforce legislation.
The President did not elaborate on the kind of measures he proposed to uphold the principles of equal and fair treatment.
“There cannot be unfair treatment to the detriment of Cypriots, while foreigners are also victimised because they are being hired on very basic salaries and benefits.”
Christofias echoed the argument that others in the sector have raised about the island`s traditional tourism product being `diluted` with foreigners who lack rudimentary Greek language skills and the required training.
The Cyprus Tourism Organisation is also concerned that the island`s famed tradition for hospitality is being compromised as establishments cut costs.
CHA chief Haris Loizides – in a tempered response to the President`s outburst – cautioned over promoting what might be deemed as protectionism that could leave the government open to claims of racism.
“We must be especially careful in our public positioning so as not to give the right to anyone in the EU to officially accuse Cyprus of encouraging discrimination against legal workers in our country.”
Moreover, he argued the recent minimum wage hike in Cyprus was attracting people from across Europe.
He said that hotels were not deliberately excluding Cypriots but making a perfectly `legal business choice` in who they recruit based on market conditions to ensure the tourism sector remained competitive.
Loizides said creating a `climate of suspicion` was only causing more tension and undermining industrial peace.
“There is no entrepreneur who doesn`t want, above all else, to invest in his country.”
Tourism is one of the island`s largest employers and a key contributor to GDP growth.
Related posts: