23/11/2010 15:23
Finance Minister, Charilaos Stavrakis stated before the House Audit Committee on Tuesday that the Eurocypria employees will be paid on Thursday.
“The employees will receive the salary for November, the 13th salary and the provident fund”, he said.
“However, it is still unknown whether they will receive the 14th salary”, he noted, emphasizing that the liquidator will look into the issue positively.
“The instructions that have been given to the liquidator are to give priority to the money that the company has for its obligations to the employees”, he said.
The Minister explained that when a company is in liquidation process, it is a penal offence for its Manager to pay the creditors by choice, stressing that “the law is strict and the Deputy Executive Chairman of Eurocypria will go to jail if it is ascertained that he pays in a way that it is not in accordance with the law”.
Mr. Stavrakis also said that the compensation plan will be the same as the CAIR retirement plan. This means that the highly-paid will receive less and the lowly-paid more.
According to the Minister, the compensations will be discussed at the next meeting of the Council of Ministers.
CAIR survival
Referring to the possible absorbance of some employees by CAIR, Mr. Stavrakis said that the actual issue is the survival of Cyprus Airways.
“We appealed to the BoD of CAIR to give priority to the Eurocypria employees if the company seeks for new employees”, he said.
“It is complicated because CAIR face problems that are bigger than described, so it is not clear how many employees will be dismissed first or how many will be redundant before they create new job posts”, he noted.
“Cyprus Airways have a future, given that the Management and the employees agree on a realistic restructuring plan, which will be able to reduce this year’s loss of €30 million to zero or an ideal small profit in the next twelve months”, the Minister said.
“The venture is difficult since most expenses concern aircraft leases or fuel and they have stable prices. The increase in productivity and a better organization of the flights could contribute positively”, he added.
“Everybody must contribute for the survival of CAIR and we should not exclude drastic staff cuts or change of the way of working in the future”, Mr. Stavrakis concluded.
“The employees will receive the salary for November, the 13th salary and the provident fund”, he said.
“However, it is still unknown whether they will receive the 14th salary”, he noted, emphasizing that the liquidator will look into the issue positively.
“The instructions that have been given to the liquidator are to give priority to the money that the company has for its obligations to the employees”, he said.
The Minister explained that when a company is in liquidation process, it is a penal offence for its Manager to pay the creditors by choice, stressing that “the law is strict and the Deputy Executive Chairman of Eurocypria will go to jail if it is ascertained that he pays in a way that it is not in accordance with the law”.
Mr. Stavrakis also said that the compensation plan will be the same as the CAIR retirement plan. This means that the highly-paid will receive less and the lowly-paid more.
According to the Minister, the compensations will be discussed at the next meeting of the Council of Ministers.
CAIR survival
Referring to the possible absorbance of some employees by CAIR, Mr. Stavrakis said that the actual issue is the survival of Cyprus Airways.
“We appealed to the BoD of CAIR to give priority to the Eurocypria employees if the company seeks for new employees”, he said.
“It is complicated because CAIR face problems that are bigger than described, so it is not clear how many employees will be dismissed first or how many will be redundant before they create new job posts”, he noted.
“Cyprus Airways have a future, given that the Management and the employees agree on a realistic restructuring plan, which will be able to reduce this year’s loss of €30 million to zero or an ideal small profit in the next twelve months”, the Minister said.
“The venture is difficult since most expenses concern aircraft leases or fuel and they have stable prices. The increase in productivity and a better organization of the flights could contribute positively”, he added.
“Everybody must contribute for the survival of CAIR and we should not exclude drastic staff cuts or change of the way of working in the future”, Mr. Stavrakis concluded.
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