Unions back transfer deal despite general opposition to privatisations

The Finance Ministry, the Cyprus Stock Exchange (CSE) and its employee unions signed an agreement on Friday to transfer staff to the public service.

The agreement was formalised in the presence of all relevant parties.

Speaking to reporters after the signing, Finance Minister Makis Keravnos expressed his satisfaction with the outcome.

This is an agreement that regulates the transfer of CSE personnel to the public service in the event that the privatisation process of the exchange is completed he said.

Kervanos described the deal as crucial to achieving the common goal of privatising the Cyprus Stock Exchange.

“The signing opens the way for the examination of government bills submitted to the House of Representatives,” he added.

He explained that there is a shared belief that privatisation will strengthen the capital market with all its positive effects.

“I am pleased because the agreement was reached after coordinated dialogue and consultations with the sincere and constructive participation of all involved parties,” he said.

He added that it “reflects government policy that demonstrates respect for employees and secures their employment, leaving all parties satisfied.”

“The agreement provides for a smooth and comprehensive transfer of Cyprus Stock Exchange staff to the public service, safeguarding their future employment,” the minister said.

“It also includes provisions for a voluntary early retirement scheme and arrangements for existing medical care plans, the supplementary benefits fund and the employee welfare fund,” he added.

“I would like to warmly thank both the department of administration and personnel at the Finance Ministry and the management of the exchange, as well as the employee unions who worked intensively in a spirit of cooperation and mutual understanding, and achieved this agreement which paves the way for a major step in the privatisation of the exchange,” Keravnos stated.

On his part, CSE chairman Marinos Christodoulides said that “signing the agreement with the two unions represents another significant and decisive step for the privatisation of the exchange and the modernisation of the capital market”.

Moreover, he highlighted the “importance of staff as partners in the process” and thanked them for their support and constructive stance.

Christodoulides also expressed gratitude to the director general of the Finance Ministry and the minister himself for their “positive attitude and contribution to the agreement“.

From the unions’ perspective, the privatisation of the CSE represents a “different case compared with other semi-state organisations“, they said.

Trade union Sek’s Andreas Elia said that “the financial and capital market has its own conditions which required employees to agree to proceed with the privatisation”.

“The priority was to secure employees’ rights and positions and we have achieved that both through the law and this supplementary agreement,” he added.

He also that the intervention of the House finance committee was critical to reaching the agreement, enabling the relevant bill to be examined next week.

He also thanked the Finance Ministry “for the dialogue that led to today’s outcome”.

Peo’s Nicos Gregoriou said that he was “pleased that after a long and constructive social dialogue they managed to regulate staff rights satisfactorily”.

“This agreement secures employment continuity or voluntary exit options and respects rights under collective agreements,” he added, referring to the Welfare and Medical Care Funds.

He also stressed the importance of a socially accepted agreement following dialogue and said that the privatisation of the exchange is “a completely different case from others”.

“Unions remain firmly against privatisations,” he concluded.