Cyprus Labour Minister Calls for Regulation to Tackle Illegal Work in Construction

Cyprus Labour Minister Yiannis Panayiotou has raised concerns over the increasing prevalence of illegal and undeclared work in the construction industry, which is estimated to account for nearly 25% of the sector. In light of the nation's economic growth and existing labour shortages, Panayiotou is urging for stringent regulation and enhanced cooperation to address this pressing issue.

The construction industry in Cyprus has become a significant area of concern due to the high levels of unregistered labour. This situation not only undermines fair competition but also deprives the state of substantial tax revenues and social security contributions. The Labour Minister's call to action highlights the need for a comprehensive strategy to mitigate the adverse effects of this illegal activity.

Panayiotou's appeal comes at a time when Cyprus is experiencing notable economic growth, which paradoxically is accompanied by labour shortages in several sectors, including construction. The demand for skilled workers has led to an increase in the employment of undocumented labourers, exacerbating the problem of illegal work. The minister emphasized that addressing this issue is crucial for maintaining the integrity of the labour market and ensuring fair working conditions.

The issue of illegal and undeclared work in the construction industry has significant implications for the economy and labour market, affecting tax revenues, social security contributions, and fair competition. If left unaddressed, it could lead to reduced public services and infrastructure investment, ultimately hindering the sustainable development of Cyprus.

The Labour Ministry is advocating for a multi-faceted approach to combat illegal and undeclared work. This includes the introduction of stricter regulatory measures, increased inspections, and the promotion of cooperation between government agencies, employers, and workers' unions. By fostering a collaborative environment, the ministry aims to create a more transparent and accountable construction industry.

Panayiotou's initiative also seeks to protect the rights of workers who are often exploited in the shadow economy. Undocumented workers typically face poor working conditions, lack of social security, and inadequate wages. By bringing these workers into the formal economy, the ministry hopes to improve their welfare and ensure they receive the benefits and protections they are entitled to.

The Labour Minister's call to action underscores the broader implications of illegal and undeclared work on the economy. It not only affects the construction industry but also has a ripple effect on other sectors, potentially leading to reduced public services and infrastructure investment due to lower tax revenues. Addressing this issue is therefore seen as vital for the sustainable development of Cyprus.

In conclusion, Yiannis Panayiotou's efforts to combat illegal and undeclared work in Cyprus's construction industry reflect a critical step towards ensuring economic stability and fairness. By advocating for stronger regulations and fostering cooperation, the Labour Ministry aims to create a more equitable labour market that benefits both workers and the broader economy.

Key Takeaways

• Cyprus' construction industry has 25% illegal and undeclared work.
• Labour Minister Yiannis Panayiotou calls for stricter regulation and cooperation.
• Illegal work deprives the state of tax revenues and social security contributions.
• Undocumented workers face poor working conditions and lack of benefits.
• Addressing illegal work is crucial for Cyprus' economic stability and fairness.