09/11/2010 08:53
The compensation plan of the 320 employees of Eurocypria, who will lose their jobs due to the Company’s bankruptcy, faces several technical difficulties. The Finance Ministry technocrats work hard to prepare the plan, which will complement the money that they will receive from the provident fund and the redundant staff.
The technical difficulties make the completion of the plan in the week difficult, despite what the government had declared on Friday. “Its adoption must start after the Company’s liquidation”, Finance Ministry General Manager, Christos Patsalides told StockWatch yesterday.
Mr. Patsalides avoided answering about the cost of the compensation plan for the taxpayers, stressing that this will depend on the number of the Eurocypria employees that will use it, since a number of them will be employed by Cyprus Airways.
Cyprus Airways is expected to lease two or three additional aircrafts, which entails the appointment of fourty persons per aircraft, eleven of whom are usually pilots.
Also, CAIR is expected to proceed with early retirements and to appoint 80-100 persons from Eurocypria to cover its needs.
The ideal for the Ministry would be to compensate 100 Eurocypria employees.
Such a scenario means that the cost of compensations would stand at €4-5 million, that is, €40-50 thousand per person, excluding the provident fund and the redundant staff.
However, the Ministry is afraid that the cost for the taxpayers could reach up to €15 million if the number of the employees that would not be appointed by CAIR would be minimal.
Another difficulty is also the time that it will take until the appointments in CAIR. The compensation plan will be adoptable only when the appointments are made clear, which might take months.
According to sources, no Eurocypria employee will be appointed earlier than three months, given the procedures that they will follow as well as the approval of the early retirement plan required by the EU so that a number of job posts is created for the absorbance of the Eurocypria staff.
The appointment of the staff by CAIR at a later stage can be carried out in accordance with the EU remarks as new staff coming from the market.
According to the same remarks, the compensation plan can be adopted by the government only after Eurocypria’s liquidation.
The start of the liquidation procedure will be announced by the Gazette pursuant to the relevant Law and also in order to give the required time to the creditors to come to Cyprus”, Mr. Iacovou told StockWatch.
The technical difficulties make the completion of the plan in the week difficult, despite what the government had declared on Friday. “Its adoption must start after the Company’s liquidation”, Finance Ministry General Manager, Christos Patsalides told StockWatch yesterday.
Mr. Patsalides avoided answering about the cost of the compensation plan for the taxpayers, stressing that this will depend on the number of the Eurocypria employees that will use it, since a number of them will be employed by Cyprus Airways.
Cyprus Airways is expected to lease two or three additional aircrafts, which entails the appointment of fourty persons per aircraft, eleven of whom are usually pilots.
Also, CAIR is expected to proceed with early retirements and to appoint 80-100 persons from Eurocypria to cover its needs.
The ideal for the Ministry would be to compensate 100 Eurocypria employees.
Such a scenario means that the cost of compensations would stand at €4-5 million, that is, €40-50 thousand per person, excluding the provident fund and the redundant staff.
However, the Ministry is afraid that the cost for the taxpayers could reach up to €15 million if the number of the employees that would not be appointed by CAIR would be minimal.
Another difficulty is also the time that it will take until the appointments in CAIR. The compensation plan will be adoptable only when the appointments are made clear, which might take months.
According to sources, no Eurocypria employee will be appointed earlier than three months, given the procedures that they will follow as well as the approval of the early retirement plan required by the EU so that a number of job posts is created for the absorbance of the Eurocypria staff.
The appointment of the staff by CAIR at a later stage can be carried out in accordance with the EU remarks as new staff coming from the market.
According to the same remarks, the compensation plan can be adopted by the government only after Eurocypria’s liquidation.
The start of the liquidation procedure will be announced by the Gazette pursuant to the relevant Law and also in order to give the required time to the creditors to come to Cyprus”, Mr. Iacovou told StockWatch.
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