Peo criticises lack of dialogue on new demographic measures

Trade union Peo criticised the government on Thursday for not engaging in structured dialogue before announcing the latest set of measures aimed at addressing the country’s demographic challenges and promoting work-life balance.

In a statement, Peo acknowledged that the new measures represent a positive step but said they were insufficient to effectively tackle Cyprus’ demographic problem, citing significant shortcomings in childcare facilities and financial difficulties faced by young couples.

President Nikos Christodoulides announced a €50 million package of measures on Monday as part of a broader €100 million action plan to support parents and encourage higher birth rates, including a €200 monthly allowance for mothers under the age of 30 for two years, extensions to parental leave, and subsidies for businesses with over 100 employees to create on-site childcare facilities.

Christodoulides called the country’s demographic situation as a “major national challenge,” citing a declining fertility rate, the rising average age of mothers giving birth, and the increasing life expectancy in Cyprus.

Peo’s statement said that a substantial portion of the announced funding will come from the social insurance fund and criticised the lack of prior discussions within the established tripartite social dialogue structures.

“Once again, the President is announcing measures that are not ready for immediate implementation,” the union said.

It also highlighted that around 15 per cent of working mothers are excluded from receiving maternity benefits due to not meeting social insurance fund criteria. Peo called for an immediate solution to provide alternative financial support for these women, who are left without income for 22 weeks.

The measures also include the extension of nursery operating hours until 7.30 pm and subsidies for businesses to create nurseries for employees.

However, Peo said it is waiting for a detailed plan on how and when these measures will be implemented.

The union further expressed concerns about the effectiveness of the announced policies, adding that only 50 per cent of private childcare facilities participate in the government’s fee subsidy scheme. Additionally, there is a waiting list of 3,765 children for a place in these facilities, with only four public childcare structures operating, alongside 78 community and 389 private facilities.

On the issue of birth incentives, Peo expressed doubts about the focus on offering a €200 monthly allowance to women giving birth before the age of 30. While the union said it understands the rationale behind the incentive, it questioned the emphasis on age as the main criterion for eligibility.

Finally, Peo called for a comprehensive approach to support young couples by ensuring an adequate and affordable childcare network, effective family policies, and a broader dialogue involving local authorities, social partners, and community organisations.