Labour Minister Targets Undeclared Work in Construction Industry

Addressing the Challenge of Undeclared Work

In a recent conference with builders and tradespeople, Labour Minister Yiannis Panayiotou highlighted the pressing issue of undeclared work within the construction industry. The minister warned that without prompt intervention, the problem could escalate beyond current estimations. “We have before us important and difficult problems, especially for undeclared work which is very worrying and if not addressed soon it will be a much bigger problem than we assess it to be today,” Panayiotou stated.

Panayiotou conveyed a sense of optimism regarding the renewal of the collective agreement in the construction sector, which is seen as a pivotal step towards addressing the challenges posed by undeclared work. Furthermore, he announced that an overhaul of the institutional framework designed to combat this issue is underway. This new framework is expected to be presented to the House plenum before the summer recess, aiming for consensus among lawmakers.

The protection of wages for young workers in the construction industry was also a key point of discussion. Panayiotou emphasized that ensuring minimum wage standards is not solely the concern of the Peo union or the government but is a stance supported by the European Union. “It is the position of the EU where for countries like ours where the coverage of collective agreements is limited there should be legislative provisions that protect minimum wages in the sector and this will be part of our discussion which is in the final stages,” he elaborated.

With a focus on improving work conditions in line with rising quality of life expectations, Panayiotou’s remarks underscored the need for progress in labor rights and regulations. “As the world evolves and as our expectations for quality of life rise, the terms and conditions of work must improve and not worsen,” he concluded, setting a positive tone for future developments in labor legislation.

undeclared work
Undeclared work in construction is significant, varying by region. It often stems from the sectors demand for flexible labor and the prevalence of subcontracting, which can obscure employment relationships and facilitate informal arrangements.

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