10/10/2012 07:11
Cyprus Popular Bank proposed to ETYK a 15% cut of the Cypriot payroll, on the sidelines of the negotiations that started few weeks ago to implement the decree for the support of the bank.
The decree issued by the Finance Minister almost five months ago provides for a salary and benefit cut of the staff in Cyprus by 12.5%. It also provides for the reduction in the group payroll by 8% in 2013.
The Management of the bank suggested on Monday salary cuts ranging between 6% and 24%.
According to sources, Cyprus Popular suggested tiered percentage cuts depending on the salary scale of each employee.
Employees with annual salary of €20,000 - €30,000 are estimated to suffer a decrease of 6% from their monthly salary.
For annual earnings of more than €30,000 and up to €120,000, the salary cut will increase incrementally reaching up to 24% for employees receiving more than €100 thousand per annum.
The benefits policy of the Group, as well as the car and gas privileges that the executives of the organization enjoy will be examined thoroughly.
One of the suggestions provides that part of the cut-off will emerge through reduced contribution of the employer to the provident fund. Based on the agreement one year ago, the employer contributes 14% of the salary to the fund and the proposal suggests reducing it to 10%.
The consultations also referred to the bank’s proposal for a reduction in the number of staff.
Specifically, 104 employees have accepted the proposal for early retirement, while by 2017 100 more employees will retire normally.
KPMG’s report for the restructuring of the organization recommends a reduction of 500 – 600 employees.
Therefore, by 2017 the proposal will concern 300 persons, in cooperation with the trade union, but this will be decided at a later stage.
ETYK will examine the proposals so that the two sides reach an agreement the soonest possible.
Within the framework of the state support of Cyprus Popular Bank, that so far needs €3 billion, both sides know that there is no room for delay, since troika might decide larger cutbacks.
Similar moves for the reduction of the operating cost and the payroll are made in Greece, where many branches have closed since early 2012.
The decree issued by the Finance Minister almost five months ago provides for a salary and benefit cut of the staff in Cyprus by 12.5%. It also provides for the reduction in the group payroll by 8% in 2013.
The Management of the bank suggested on Monday salary cuts ranging between 6% and 24%.
According to sources, Cyprus Popular suggested tiered percentage cuts depending on the salary scale of each employee.
Employees with annual salary of €20,000 - €30,000 are estimated to suffer a decrease of 6% from their monthly salary.
For annual earnings of more than €30,000 and up to €120,000, the salary cut will increase incrementally reaching up to 24% for employees receiving more than €100 thousand per annum.
The benefits policy of the Group, as well as the car and gas privileges that the executives of the organization enjoy will be examined thoroughly.
One of the suggestions provides that part of the cut-off will emerge through reduced contribution of the employer to the provident fund. Based on the agreement one year ago, the employer contributes 14% of the salary to the fund and the proposal suggests reducing it to 10%.
The consultations also referred to the bank’s proposal for a reduction in the number of staff.
Specifically, 104 employees have accepted the proposal for early retirement, while by 2017 100 more employees will retire normally.
KPMG’s report for the restructuring of the organization recommends a reduction of 500 – 600 employees.
Therefore, by 2017 the proposal will concern 300 persons, in cooperation with the trade union, but this will be decided at a later stage.
ETYK will examine the proposals so that the two sides reach an agreement the soonest possible.
Within the framework of the state support of Cyprus Popular Bank, that so far needs €3 billion, both sides know that there is no room for delay, since troika might decide larger cutbacks.
Similar moves for the reduction of the operating cost and the payroll are made in Greece, where many branches have closed since early 2012.
Related Articles
