As the Minimum Wage Commission reconvenes, the Cyprus Turkish Chamber of Industry (KTSO) calls for a decision that balances business sustainability with workers’ living standards amid rising inflation and production costs.
KTSO Calls for Economic and Social Balance in Determining New Minimum Wage
The Cyprus Turkish Chamber of Industry (KTSO) has issued a written statement addressing the ongoing negotiations concerning the second minimum wage adjustment of the year, emphasizing the importance of balancing economic sustainability with social justice.
The Minimum Wage Determination Commission, which convened yesterday and shared relevant economic indicators, is scheduled to meet again tomorrow at 11:00 a.m. at the Ministry of Labor and Social Security. One of the key figures influencing the adjustment is the six-month inflation rate, recently recorded at 17.79%.
“Social Justice and Labor Peace Must Be Preserved”
In a press release titled “Economic and Social Balance Should Be the Basis for Minimum Wage Determination,” the Chamber underscored that the process must safeguard labor peace, support domestic production, and uphold fair income distribution.
“As the Turkish Cypriot Chamber of Industry, we believe a wage balance must be struck that protects both the sustainability of businesses and the living standards of employees,” the statement noted.
Acknowledging the realities of the current economic environment, KTSO urged that both inflationary pressures and rising operational costs be factored into the final decision.
Industrial Sector Under Strain
The Chamber highlighted that the industrial sector plays a vital role in the national economy, yet it is increasingly burdened by:
- Rising energy costs
- Persistent inflation
- Exchange rate volatility
- Soaring production input prices
These factors, according to KTSO, are eroding the competitive capacity of local producers, making a balanced and data-driven wage policy essential.
Appeal for Pragmatism and Consensus
KTSO concluded by expressing hope that the ongoing deliberations will be guided by common sense, dialogue, and consensus. The ultimate goal, the Chamber emphasized, should be a minimum wage policy that promotes long-term economic resilience while enhancing social welfare.
“In light of these challenges, it is essential that economic data, labor market conditions, and the sustainability of productive sectors be evaluated together in setting the minimum wage,” the statement read.
Conclusion
As the TRNC navigates complex economic pressures, the call from KTSO serves as a reminder of the delicate balancing act required between protecting workers’ rights and ensuring business viability. With inflation and input costs mounting, tomorrow’s meeting of the Minimum Wage Determination Commission will be closely watched by all sectors of society. northcyprusinvesting.com, Investra.io