Discussion in the Parliamentary Labor Committee on the opening hours of retail stores
The Government's clear position not to change the opening hours of retail stores in order not to differentiate the commercial environment as it has been formed in the last decade, was expressed by the Minister of Labour, Yiannis Panagiotou, to the Parliamentary Labor Committee which discussed the matter on Tuesday.
The Minister noted that the commercial environment, as it has changed in the last ten years, was a product of specific socio-economic conditions, increased unemployment, an economy in a service situation, where decisions were needed to stimulate the market, better development prospects and jobs.
On the contrary, he noted that today, the main problem he is called upon to solve as Minister is that of the need for more people to staff the labor market.
He noted that during the pre-election period no presidential candidate raised the issue of differentiating shop hours, while he said there was a general acceptance that this environment worked in a way that had a positive contribution to the growth of the economy and the reduction of unemployment.
As he said, the Government's position is that "this commercial environment that has been operating for a decade is not right to diversify. Regressions create problems, development and investment insecurity. Everyone needs to know what the rules are and operate according to them," noting that if there is an impression of liquidity or an appearance of temporaryness it will be problematic for the economy.
He added that in relation to the resulting effects, small businesses need to be supported more, stating that the Ministries with the relevant competence formulate and promote such policies.
He also mentioned that as the commercial environment was formed, it needs codification, in order to be able to function within an institutional framework. He added that the Ministry is in close cooperation with the Legal Service for the changes in the institutional framework.
It is also a priority, he said, to respect the rights of workers, noting that the percentage of criminal cases registered in court by the Ministry for violations involving workers is below 1%, out of over 2,000 labor inspections per year, which, he said, shows that employee benefits are respected. Correspondingly, the cases registered and concerning non-respect for the observance of holidays defined by the legislation, "can be counted on the fingers of one hand".
"Our position is that a variation in the market rules will be a regression, a retreat. The world is moving forward." He also expressed the opinion that discussing the issue every three months, since there is no intention of change, "just creates a manufactured impression that everything is fluid and there can be changes. It is not good for the market and the economy."
The representative of the Legal Service, Eleni Kouzoupi, said that the Legal Service, as the legal advisor of the executive power, takes into account the government's policy, and in cooperation with the Ministry will be reflected in an institutional framework, taking into account the jurisprudence, as formulated by in 2015 and beyond.
The President of the Committee, Member of Parliament of AKEL, Andreas Kavkalias, clarified that there is no question of the Parliament determining the opening hours of the shops, as this has been judicially rejected by the Supreme Court, with a decision determining that this is the competence of the executive power. He pointed out, however, that there is a legal loophole, as the law stipulates that shops are closed on Sundays, except for the Christmas and Easter periods, giving the possibility to vary the hours by decree. As he said, since 2016 there has been no relevant decree and therefore the matter must be regulated.
The Parliamentary Representative of AKEL, Giorgos Loukaidis pointed out that the majority of European countries observe the Sunday holiday and wondered why Cyprus should act differently from the majority. He also asked to document whether there is an increase in turnover with the complete liberalization of the schedule, or whether the pie has finally been redistributed in favor of very large businesses, which have the ability to stay open on Sundays.
He said that the program of the President of the Republic states that small and medium enterprises (SMEs) are the backbone of the economy, as they make up 90% of businesses and it is important that they are not led to closure. He asked if there is any data on how many SMEs have closed due to the pressure they are under and what compensatory measures the Government is proposing.
DISY MP Fotini Tsiridou said that DISY feels the obligation to ensure the commercial environment as it has been formed in the last ten years. "DISY did the right thing and we have tangible results," he said, adding that in case there are violations of the law, there are competent bodies to handle the matter.
The MP of DISY, Dimitris Dimitriou, said that the discussion of the issue may affect the psychology of the economy, however the protection of workers is of the highest priority for DISY and asked for more explanations on what applies in relation to wages on Sundays and holidays. "If there are indeed workers who are not being paid properly and are afraid to speak up or complain, let's find a way for them to do so, because that would be a throwback to other times that no one wants," he said. He added that the environment is constantly evolving. “It saddens me when I see a small business close down because they struggle on Sundays. Unfortunately or fortunately we have this environment today. Discussing a return is not something I consider tentative," he said.
ELAM Member of Parliament, Sotiris Ioannou, said that at a meeting of the Minister with POVEK in June, the intention was expressed for a dialogue on the matter and he asked if this dialogue took place in order to obtain the Government's decision. He also added that with regard to the commercial environment, the same sensitivity is not expressed for issues of unfair competition, as arise from the Green Line Regulation.
EDEK MP Andreas Apostolou mainly raised the issue of the labor rights of those who work on Sundays and asked to be linked to the discussion on licenses from third countries. "Our economy in certain sectors needs personnel, sectors where there are demonstrably no Cypriot or European citizens. This sector, commerce, if there were better conditions for workers, either in terms of wages or incentives to work on Sundays or to limit Sundays and holidays, is a sector that would be interested in staffing", he said, adding that EDEK's position is that the rights of these workers must be redefined.
The MP of DIPA, Marinos Musioutas, said that on the one hand, the issue of the labor rights of those who work on weekends and whether the legislation is being observed is being discussed. On the other hand, he added, the most important thing is that there are small shops that cannot compete. He suggested that the issue be discussed in the labor advisory body, as this is how tripartite cooperation works in Cyprus.