New collective agreement reached at Larnaca desalination plant

The Ministry of Labour and Social Insurance of Cyprus announced on August 13, 2026, that a mediation process successfully resolved a labour dispute at the M.N. Larnaca Desalination Co. Ltd plant. This agreement effectively prevents planned strike action by trade unions and establishes a new collective labour contract spanning from January 1, 2026, to December 31, 2028.

The three-year agreement includes several key improvements for the workforce. Weekly working hours will be gradually reduced from 40 to 38. Furthermore, the contract guarantees annual salary increases, raises starting wages, and provides for higher employer contributions to both the provident and welfare funds.

This resolution follows a period of tension regarding the renewal of the previous collective agreement, which had expired on December 31, 2025. The Larnaca facility, operated by a joint venture between Israel's national water company Mekorot and Netcom, has been under a long-term contract running until 2040, processing approximately 60,000 cubic metres of water daily. With the mediation proposal accepted by both the employers and union representatives, industrial stability is expected for the duration of the new contract term.