Bank workers’ union ETYK said that Bank of Cyprus’s latest voluntary retirement scheme, the third offered to employees this year, aiming at avoiding involuntary redundancies is both “balanced and decent”.
“Consultations with Bank of Cyprus’s administration took place in a constructive atmosphere of mutual understanding of each other’s positions aiming at formulating a voluntary retirement scheme as attractive as possible for all those colleagues who want to benefit from it,” the union said in a statement on its website on Friday. “The outcome of these consultations is a balanced and decent scheme in which some of our main positions expressed at our general assemblies were included”.
Bank of Cyprus which wants to reduce its staff by 250 ahead of its listing at the London Stock Exchange, was able to convince 75 workers to retire voluntarily with the previous schemes and informed labour minister Zeta Emilianidou in April of its intention to declare up to 193 workers redundant. Subsequent negotiations with ETYK led to an agreement approved by the bank’s staff, which provides for the suspension of payment to the worker’s solidarity fund and the allocation of the savings towards making the voluntary retirement scheme more enticing.
The Cyprus Business Mail understands that the new scheme, with a one-off compensation of up to €200,000 per employee based on annual earnings, years of service and age, offers more incentives to workers aged 35 to 45.
The deadline to apply for the scheme expires on June 3, while the bank reserves the right to reject applications.