Response expected to hotel worker subsidy scheme as May bookings remain low

Trade unions representing hotel employees say they expect a response in the coming days from the labour ministry regarding the extension of a subsidy scheme for workers in the hotel industry, as booking levels for May continue to lag.

Representatives of Sykxa – the hotel workers’ union affiliated with Peo –and Ouxeka – affiliated with Sek – said the ministry had been awaiting April payroll data before forming a complete picture and making decisions on whether to extend the scheme.

Sykxa secretary-general Neophytos Timinis said a meeting held at the labour ministry on April 29 examined current data and projections for May, including booking trends, cancellations and forward estimates.

“The data shows some positive movement, but not what would be expected for a strong tourist season,” Timinis said, adding that May is also likely to remain at low levels.

He explained that the absence of April payroll data at the time of the meeting meant the ministry could not yet fully assess whether workers who had been unemployed, particularly those laid off at the end of October, had returned to work.

Timinis expressed concern about employees who had not resumed work by the end of April, warning they risk losing winter unemployment benefits if they fail to complete six months of employment.

While unions are still gathering information, he noted that the labour relations department is expected to have a clearer picture through the “Ergani” system once payments are finalised this week.

He added that there are isolated cases of workers not returning, mainly in the Famagusta district and some in Paphos, though more comprehensive data is expected following inspections.

Most hotel units have reopened, he said, with only a small number of hotels, primarily within larger groups, remaining closed, with staff absorbed into other units.

Timinis said unions expect a follow-up meeting with the ministry after the April evaluation, adding that a revised subsidy scheme is likely to be presented in the coming days, based on the findings.

There is broad consensus, he said, among the labour ministry, the deputy tourism ministry, hoteliers and airport data, that May will remain weak, making an extension of the scheme likely. He added that a possible extension into June had also been discussed, though unions favour a month-by-month assessment.

On the issue of compliance with collective agreements, Timinis stressed that adherence is “self-evident”, particularly where employers receive subsidies intended to support employment rather than offset losses.

He said initial information suggests a very small number of hotels may not have applied agreed wage increases under the 2024 memorandum for renewing the sectoral agreement, adding that inspectors are already in contact with hoteliers.

From Ouxeka, secretary-general Michalis Frangou said most hotel units that had suspended operations have now reopened, in line with legislation requiring reopening by April 1.

He added that the majority of employees have returned to work, though some seasonal workers continue to be laid off and rehired.

Frangou confirmed that both unions and employers had requested an extension of the subsidy scheme for May and June during the April 29 meeting, noting that such schemes are granted where there is documented need.

“We have not yet received a response or indication from the ministry,” he said, adding that unions had also urged the labour minister to explore support through European funds.

He described the current situation as “mixed”, with some hotels reporting strong bookings while others have stabilised at lower levels, noting that international developments continue to create uncertainty.

Frangou also warned that a potential reduction or suspension of airline routes would represent a worst-case scenario for the sector.

He said the ministry is expected to respond “as soon as possible, and certainly before mid-month,” to allow employers to prepare.

On collective agreement compliance, Frangou said no complaints had been recorded, adding that employers had honoured agreed wage increases “to their credit”.