The state has decided to grant over €10 million to Cyprus Airways (CY) workers after the airline closed in January when the EU ordered it to return millions in illegal state aid, it was announced on Tuesday.
Deputy government spokesman Victoras Papadopoulos said the government was ready to plug a shortfall in the provident fund in excess of €9 million.
“The deficit will be covered through a proposal that will be put to the cabinet tomorrow and passed on to parliament immediately so that Cyprus Airways workers receive their share of the provident fund as soon as possible,” Papadopoulos said.
The government has also decided to pay €2.7 million in compensation to those laid off between December 2012 and December 2014 so that they were treated the same way as those who lost their job when the airline shut down last month.
Compensation will also be paid to workers whose employment terms did not provide for one. The amount will be determined later.
Unions also demanded that CY workers be employed in other parts of the public sector but the spokesman said there were many legal and financial constraints.
“But the government is ready to continue discussion with the unons to see if a solution can be found.”
Cyprus Airways, the island’s national carrier for 67 years closed down in January after the EU commission ordered the company to return €66 million deemed as illegal state aid.
Unable to do so, the company was deemed unviable and ceased all operations immediately.