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Closed hotels push Nov unemployment up

06/12/2004 13:48
According to CYSTAT data released on Monday, the number of registered people out of work increased by 14,544 in November, which is 4.2% of the work force. On the other hand, the number of jobless in October increased by 4,381, 2,881 of whom come from the hotel and food industry.

The Statistics’ Service announced that the number of people out of work in November was higher by 2,067 against November 2003. This increase is mostly attributable to the seasonal suspension of operations in the hotel and tourist industry. It is worth noting that the number of jobless in the hotel and restaurant sector showed an increased to 4,082 in November compared to 1,201 in October 2004 and November 2003. The number of unemployed persons in the sectors of trade, transports and communications, constructions and manufacturing recorded an increase.

Temporary suspension of operations, but…

The increase in the number of people out of work in the hotel sector forced the trade unions to express their complaints against the employers. Speaking to StockWatch, SEK and PEO accused hoteliers for adopting the agreement for temporary suspension of operations at the expense of the Cypriot workers, since employers employ more and more foreign staff. According to the relevant agreement, hotel employees are registered as unemployed in the period November-March.

“Unemployment will continue to increase in the next few months mostly due to the employment of foreign workers with subordinate terms of employment. More than that, the renewal of the agreement that governs the temporary suspension of operations in the hotel industry does not provide that the employer must submit 25% of the salary. This reduces the cost for the employer”, Nicos Epistithiou said. It is noted that the hotel industry employs more than 15,000 workers.

“This phenomenon has taken geographical dimensions. For the first time in Paphos, 20 hotels suspended their operations in the winter season, despite indications that October would be a good month”, PEO officer, Lefteris Georgiades said.

More hotels close in winter

The increase in the number of hotels that suspend their operations temporarily is attributable to the sharp increase in the number of employees. Almost 50% of the hotels in Cyprus suspend their operations in winter”, STEK General Manager Fedias Karis said, rejecting allegations for a systematic exploitation of the Cypriot workers.

Foreigners are not to blame

On the question whether the employment of foreign workers has affected negatively employment, Cyprus Labour Institute Manager, Nicos Trimikliniotis said that the increase in unemployment is attributable to the lack of demand. Mr. Trimikliniotis also referred to the new legislation within the framework of harmonization which enforces employers to inform their employees, Cypriots or not, on the union contract.