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3 unions endorse CCB’s early exit scheme, ETYK sees weaknesses

July 26, 2018 at 4:33pm
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Trade Unions PEO, SEK and PASYDY endorsed on Thursday a voluntary retirement scheme for 900 employees of the state-owned Cyprus Co-operative Bank (CCB) in the context of a deal for the transfer of the CCB’s performing operations to Hellenic Bank.

But bank employees union ETYK said the scheme has weaknesses and gaps which jeopardise its chances of success.

Earlier, the three other trade unions held a joint conference today, analysing a revised scheme submitted yesterday by the CCB’s board which provides for tax-free compensation up to €180,000.

The plan  was approved by the Council of Ministers yesterday and will be submitted to EGM Meeting next Tuesday.  After its approval, it will be announced to the employees who will have until August 17 to decide.

“The assembly unanimously decided to endorse and approve the early retirement scheme so that it will be conveyed to the personnel,” PASEY PEO General Secretary Savvas Touloupos said.

OYIK SEK’s General Secretary, Elisseos Michael, said the CCB’s revised proposal compares favourably to the scheme implemented by other Cypriot banks while it has a fairer distribution of compensation across the employees’ salary scale.

Andreas Louca, PASYDY senior permanent secretary said the unions examined the last schemes launched by Cypriot banks, noting that the one offered by the CCB is way better than the other plans.

The plan provides that the employees opting for voluntary retirement will receive 26% of their gross annual income multiplied by their years of employment.

But in a separate statement later on Thursday ETYK said there were gaps in the scheme which endangered its chances of  meeting its target of 900 employees signing up.

It said the proposal rejected the union’s suggestion of a minimum €100,000 compensation which would have made it more attractive to low paid employees.

It said another negative point was the money will be paid in four instalments through to the end of 2019.