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Unbridgeable gap in CAIR

10/02/2012 14:37
The first mediatory meeting at the Labour Ministry to bridge the labour dispute between CAIR and the trade unions was fruitless.

According to representatives of all five trade unions, the gap separating the two sides emerged from the first meeting.

In his statements to StockWatch, PASYPI Chairman, Charalambos Tappas said that the trade unions expected by the Management to have a completed action plan. “Instead, it delivered a multi-page draft of each sector separately, which provides for the reduction of the labour cost by 9%, which corresponds to €5 million per annum, without ensuring that the company will become viable with the new consolidation measures”.

“If the trade unions agree with new concessions, the trade unions ask for offsetting measures, such as their participation in the Company’s share capital increase with significant stake”, he said.

Similarly, SIDIKEK – PEO General Secretary, Antonis Neophytou, stressed that the trade unions do not discuss further concessions within the framework of the renewal of the union contracts until they receive a completed survival plan, i.e., the number of employees that will withdraw, the exact reduction of the fleet – if intended – and the reduction of other assets.

“However, the employees are willing to deliberate with the Management in order to take consolidation measures, so long as they receive a completed business plan”, he added.

According to the trade unions, the mediator also referred to the Management’s intention to reduce the staff via redundancy but avoided giving further details.

Cyprus Airways currently employ 1100 persons from 2200 in 2003. From 2004 to date, six consolidation plans have been adopted.

Following the latest developments, the mediator will continue deliberations separately, with the Management on Monday, the trade unions on Tuesday and if there are convergences a joint meeting on Thursday.

The dispute emerged after the Management’s decision to keep the measure for a 9% cutback of the monthly salary, pushing them to accept the new measures.

The agreement was reached last February and was effective for one year.