26/10/2012 11:33
Cyprus Popular Bank announced today tiered salary cuts of 5% to 17% against disagreements expressed by ETYK, the trade union of bank employees.
According to a memo, cuts concern employees with annual revenues of more than €10 thousand and start with 5%.
For employees receiving more than €114 thousand, cuts are of 17%.
Salary cuts will become effective from October.
The Management said that a joint proposal with ETYK was not feasible.
Bank spokesman said that some of ETYK’s proposals were taken into account.
CPB received state support of €1.8 billion against a commitment to cut its payroll by 12.5% in Cyprus in 2012, after deliberations with ETYK.
The bank is under a restructuring process, which provides for the closure of branches, the reduction of spending and, in a 5-year depth, a workforce reduction by 600 persons.
The Management also decided to cut its benefit policy.
They decided a 50% cut in benefits related to various departments of the Group, such as the IT.
At the same time, all contractual vested benefits will be reduced by 60% and all remaining non-contractual benefits will be abolished.
The marriage benefit will be abolished too, and so will the additional surcharges given after graduating with a banking degree.
In addition, it was decided to reduce the number of cars of senior executives and the use of corporate phones.
As for the loans of the employees, they will be able to restructure them as the case may be.
To facilitate employees facing problems with their family budget, part of the salary may be cut by reducing the employer's contribution to the provident fund, which currently stands at 14%.
According to a memo, cuts concern employees with annual revenues of more than €10 thousand and start with 5%.
For employees receiving more than €114 thousand, cuts are of 17%.
Salary cuts will become effective from October.
The Management said that a joint proposal with ETYK was not feasible.
Bank spokesman said that some of ETYK’s proposals were taken into account.
CPB received state support of €1.8 billion against a commitment to cut its payroll by 12.5% in Cyprus in 2012, after deliberations with ETYK.
The bank is under a restructuring process, which provides for the closure of branches, the reduction of spending and, in a 5-year depth, a workforce reduction by 600 persons.
The Management also decided to cut its benefit policy.
They decided a 50% cut in benefits related to various departments of the Group, such as the IT.
At the same time, all contractual vested benefits will be reduced by 60% and all remaining non-contractual benefits will be abolished.
The marriage benefit will be abolished too, and so will the additional surcharges given after graduating with a banking degree.
In addition, it was decided to reduce the number of cars of senior executives and the use of corporate phones.
As for the loans of the employees, they will be able to restructure them as the case may be.
To facilitate employees facing problems with their family budget, part of the salary may be cut by reducing the employer's contribution to the provident fund, which currently stands at 14%.
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