Cabinet has approved implementing a new framework for collective agreements at state-owned enterprises from 1 January 2027, placing emphasis on performance and financial sustainability.

The decision follows a review by an expert committee appointed by the Treasury Secretary, which consulted relevant stakeholders before submitting its recommendations.

On 11 May 2026, Cabinet decided to extend existing collective agreements, under their prevailing terms and conditions, until 31 December 2026. It also approved developing a revised framework for implementation from the following year.

The committee recommended operating collective agreements subject to applicable labour legislation, including the Industrial Disputes Act, the Trade Unions Ordinance and legislation governing shop and office employees.

Its recommendations also cover profit-sharing and incentive payment arrangements.

The President submitted the proposal in his capacity as Minister of Finance, Planning and Economic Development.