27/12/2012 07:26
Cyprus Popular Bank announced a voluntary retirement plan for its three thousand employees in Greece, offering up to €120 thousand to those who want to leave early.
The plan aims to reduce the operating costs of the bank and is associated with its reorganization in Greece, where the branch network and its presence in general is rapidly shrinking.
The voluntary retirement plan was announced on December 21 and the management gives a 3-week notice to the employees to decide whether to stay or leave the bank.
Those who have not completed their 45th year will take 0.4 salaries for each year of service.
From the 45th until the 55th year, one a salary for each year of service will be paid while from the 55 age and over 1.25 salaries will be offered.
An additional €8 thousand will be for each child for beneficiaries under 22 and €10 thousand for each employee over 45 with at least five years of service.
The insurance offered by Cyprus Popular will be expanded up to a year after leaving and the favourable loan terms will be valid for two more years.
A similar plan was offered to its 2.5 thousand employees in Cyprus, leading to the early retirement of approximately one hundred employees.
The bank received a capital injection of €1.8 billion from the state in June and prepared a restructuring plan which provides, among others, reducing its staff by 2016.
On Friday, the Group convened an extraordinary general meeting on February 13 to continue its activities, since the capital losses expanded due to bad debts in Greece and Cyprus.
In the first nine months of 2012, the bank suffered losses of €1.7 billion due to increased bad debts and write-off of goodwill.
The Group proceeded with a wage cut close to 12.5% in Cyprus, based on the Decree of support from the Cypriot state.
According to the decree, the payroll of the group should be reduced by "additional - at least - 8% in 2013”.
The plan aims to reduce the operating costs of the bank and is associated with its reorganization in Greece, where the branch network and its presence in general is rapidly shrinking.
The voluntary retirement plan was announced on December 21 and the management gives a 3-week notice to the employees to decide whether to stay or leave the bank.
Those who have not completed their 45th year will take 0.4 salaries for each year of service.
From the 45th until the 55th year, one a salary for each year of service will be paid while from the 55 age and over 1.25 salaries will be offered.
An additional €8 thousand will be for each child for beneficiaries under 22 and €10 thousand for each employee over 45 with at least five years of service.
The insurance offered by Cyprus Popular will be expanded up to a year after leaving and the favourable loan terms will be valid for two more years.
A similar plan was offered to its 2.5 thousand employees in Cyprus, leading to the early retirement of approximately one hundred employees.
The bank received a capital injection of €1.8 billion from the state in June and prepared a restructuring plan which provides, among others, reducing its staff by 2016.
On Friday, the Group convened an extraordinary general meeting on February 13 to continue its activities, since the capital losses expanded due to bad debts in Greece and Cyprus.
In the first nine months of 2012, the bank suffered losses of €1.7 billion due to increased bad debts and write-off of goodwill.
The Group proceeded with a wage cut close to 12.5% in Cyprus, based on the Decree of support from the Cypriot state.
According to the decree, the payroll of the group should be reduced by "additional - at least - 8% in 2013”.
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