02/07/2013 13:54
Bank of Cyprus is waiting for green light of the Resolution Authority of the Central Bank of Cyprus to implement the voluntary retirement plan.
The crucial meeting of the Board of BOCY during which the scenarios prepared by the Staff Committee were explained, ended around noon and the administration referred the proposal to the Central Bank, which will have the final say.
Information says that during the meeting there was contact with the negotiating team of ETYK in an attempt to deal with certain parts of the proposal that could hinder the approval on behalf of the employees.
On behalf of the trade union, it was reported that an announcement will be released in the afternoon given that the plan will be approved by the CB.
The additional wage concessions set last night on the negotiation table by the trade union were of great importance, aiming to increase the compensation of those who will leave.
The positions of the employees' side had been submitted before the administration of the Bank in the midnight, but no agreement was reached.
This followed a two-hour meeting between the two sides within the bank which gave no signs of bridging differences.
The measures recommended by ETYK aim to further savings for the employer side, over time, with additional impact on the wage package of those employees who choose to stay.
ETYK proposed the elongation of freezing of the Cost of Living Allowance, possibly by 2015, as well as the annual increments.
For those two conventional benefits of the bank employees there is an agreement for their freezing to the whole banking sector by the end of 2013.
In addition, the employees submitted a proposal for a slight decrease in the number of annual leave for the staff.
The aim of ETYK’s concessions is to reduce the haircut that will suffer the provident funds of the staff, especially those who will leave.
The first consultations between the two sides stumble at the uncertainty for the provident funds affected by developments in March.
The government has said it would cover up to 75% of funds and ETYK claims 100% for those who retire early.
With the retirement plan, the Bank wishes to save close to €70 million per annum so that total savings - which includes cuts of €30 million from the payroll - reaches €100 million.
With the plan, the Bank expects the retirement of at least 1000, and the administration has already stated that by the end of the year up to 2500 people must leave.
The bank is under consolidation since March, when the forced conversion of uninsured deposits into shares was imposed.
It is expected that it will be under consolidation until the end of July, until the valuation of assets is completed.
The Board aims to develop a restructuring plan, which will put before the relevant authorities for approval.
The new shareholders of the bank - the uninsured depositors – expect the control to be transferred to them, a process that is currently not expected to be made before September, with the convergence of the first meeting of shareholders.
The crucial meeting of the Board of BOCY during which the scenarios prepared by the Staff Committee were explained, ended around noon and the administration referred the proposal to the Central Bank, which will have the final say.
Information says that during the meeting there was contact with the negotiating team of ETYK in an attempt to deal with certain parts of the proposal that could hinder the approval on behalf of the employees.
On behalf of the trade union, it was reported that an announcement will be released in the afternoon given that the plan will be approved by the CB.
The additional wage concessions set last night on the negotiation table by the trade union were of great importance, aiming to increase the compensation of those who will leave.
The positions of the employees' side had been submitted before the administration of the Bank in the midnight, but no agreement was reached.
This followed a two-hour meeting between the two sides within the bank which gave no signs of bridging differences.
The measures recommended by ETYK aim to further savings for the employer side, over time, with additional impact on the wage package of those employees who choose to stay.
ETYK proposed the elongation of freezing of the Cost of Living Allowance, possibly by 2015, as well as the annual increments.
For those two conventional benefits of the bank employees there is an agreement for their freezing to the whole banking sector by the end of 2013.
In addition, the employees submitted a proposal for a slight decrease in the number of annual leave for the staff.
The aim of ETYK’s concessions is to reduce the haircut that will suffer the provident funds of the staff, especially those who will leave.
The first consultations between the two sides stumble at the uncertainty for the provident funds affected by developments in March.
The government has said it would cover up to 75% of funds and ETYK claims 100% for those who retire early.
With the retirement plan, the Bank wishes to save close to €70 million per annum so that total savings - which includes cuts of €30 million from the payroll - reaches €100 million.
With the plan, the Bank expects the retirement of at least 1000, and the administration has already stated that by the end of the year up to 2500 people must leave.
The bank is under consolidation since March, when the forced conversion of uninsured deposits into shares was imposed.
It is expected that it will be under consolidation until the end of July, until the valuation of assets is completed.
The Board aims to develop a restructuring plan, which will put before the relevant authorities for approval.
The new shareholders of the bank - the uninsured depositors – expect the control to be transferred to them, a process that is currently not expected to be made before September, with the convergence of the first meeting of shareholders.
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