The new economic environment in Cyprus is highly competitive and all businesses, employers and the public sector must become more competitive, Labour Minister, Makis Keravnos said on Monday. “We have no option but to improve our competitiveness”, the Minister noted, stressing that responsibility burdens the employers and the businessmen.
Within the framework of the announcement on the new increases in the minimum salaries and the salaries after the 6-month continual employment in the same employer, Mr. Keravnos said that the minimum salary has increased from £320 to £345 (7.8%) and from £340 to £367 after a 6-month continual service in the same employer. The increase will be effective retrospectively as from 1/4/2004 and concerns four categories of employees: clerks, sellers, nursing assistants and kindergarten teachers’ assistants.
Businessmen tend to…
Responding on the question whether salary increases will hit the small medium companies, Mr. Keravnos said that businessmen tend to have raising concerns for each salary increase they grant. “Employers and businessmen must realize that they should seek ways to increase their productivity and turnover if they wish to be competitive with profitable companies”, the Minister said.
“Companies are not successful if they keep salaries low in an effort to reduce operating costs. It is noted that operating costs drop with the increase in productivity”, the Minister said.
Productivity is the key of success in the EU
The new economic environment in Cyprus is highly competitive and we all must become more competitive. The basic precondition of competitiveness is productivity and we therefore have no option but to improve productivity, Mr. Keravnos said.
“We have to find ways to improve their productivity so that Cyprus is able to operate in a strictly competitive EU environment”, he added.
As to the recent Central Bank decision to increase its interest rates by 1%, Mr. Keravnos said that the Central Bank and the government observe constantly the economic developments and decisions may change any time. In this sense, the increase in interest rates was correct in the short term and might change considering developments.
With regard to the increase in productivity in the public sector, the Minister said that the government will take a number of measures such as the new evaluation system of the civil servants and the new system of temporary employment.
Criticisms to DISY
Invited to comment on the statements of the DISY MP, Lefteris Christoforou according to which the government did not proceed to offsetting measures to ease the negative effects from the EU accession, Mr. Keravnos said that it has been a year now that the government has taken offsetting measures.
It is noted that minimum salaries increased by 9% last year compared to a 5% granted by the former government for the past five years.
“State aids also reached £60 million in 2003 compared to £38 million in 2002”, he concluded.
Within the framework of the announcement on the new increases in the minimum salaries and the salaries after the 6-month continual employment in the same employer, Mr. Keravnos said that the minimum salary has increased from £320 to £345 (7.8%) and from £340 to £367 after a 6-month continual service in the same employer. The increase will be effective retrospectively as from 1/4/2004 and concerns four categories of employees: clerks, sellers, nursing assistants and kindergarten teachers’ assistants.
Businessmen tend to…
Responding on the question whether salary increases will hit the small medium companies, Mr. Keravnos said that businessmen tend to have raising concerns for each salary increase they grant. “Employers and businessmen must realize that they should seek ways to increase their productivity and turnover if they wish to be competitive with profitable companies”, the Minister said.
“Companies are not successful if they keep salaries low in an effort to reduce operating costs. It is noted that operating costs drop with the increase in productivity”, the Minister said.
Productivity is the key of success in the EU
The new economic environment in Cyprus is highly competitive and we all must become more competitive. The basic precondition of competitiveness is productivity and we therefore have no option but to improve productivity, Mr. Keravnos said.
“We have to find ways to improve their productivity so that Cyprus is able to operate in a strictly competitive EU environment”, he added.
As to the recent Central Bank decision to increase its interest rates by 1%, Mr. Keravnos said that the Central Bank and the government observe constantly the economic developments and decisions may change any time. In this sense, the increase in interest rates was correct in the short term and might change considering developments.
With regard to the increase in productivity in the public sector, the Minister said that the government will take a number of measures such as the new evaluation system of the civil servants and the new system of temporary employment.
Criticisms to DISY
Invited to comment on the statements of the DISY MP, Lefteris Christoforou according to which the government did not proceed to offsetting measures to ease the negative effects from the EU accession, Mr. Keravnos said that it has been a year now that the government has taken offsetting measures.
It is noted that minimum salaries increased by 9% last year compared to a 5% granted by the former government for the past five years.
“State aids also reached £60 million in 2003 compared to £38 million in 2002”, he concluded.
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