Cyprus Mail
Business Cyprus

Employers censure demands for co-op staff compensation (updated)

Employers association OEV said Friday it was unacceptable and an insult for co-op bank unions to demand up to €200,000 in compensation for staff who will be made redundant as part of the lender’s acquisition by Hellenic.

In a written statement, OEV said any cash paid would come out of the taxpayers’ pockets and it was “unacceptable, insulting, and dangerous to hold discussions on the figures that became public.”

Reports suggested that unions demand five annual salaries with a €100,000 minimum and €200,000 ceiling.

OEV said the co-op bank is a private company and the employer has every right to sack staff who are redundant.

The co-op is under no obligation to pay compensation to anyone made redundant, the organisation said.

According to law, the highest paid employee in the private sector with decades of service can only receive a maximum €52,667 from the redundancy fund.

OEV said thousands of private sector workers lost their jobs in companies that went bankrupt without ever receiving anything over and above their redundancy payment.

Bank workers union ETYK said the redundancy plan should meet the parameters set by the union so that it can be attractive and decent for all staff. The union said it will not accept anyone putting pressure on staff to accept the scheme.


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