Nicosia, Cyprus. The restoration of losses suffered by bank employees during the 2013 financial crisis was a central issue at the 58th annual general congress of bank workers union Etyk, held in Nicosia on Saturday. Union leaders called for the implementation of an agreement reached with the government and the Bank of Cyprus.
Pending agreement on provident fund losses
Etyk president Loizos Hadjicostis said a recently announced agreement concerning the restoration of provident fund losses had yet to be put into effect.
According to the union, the agreement resolved a dispute over responsibility for compensating losses exceeding €100,000, with the government and the Bank of Cyprus previously holding differing positions on the issue.
Etyk said the agreement remains pending because the relevant proposal has not yet been submitted to the Council of Ministers.
Compensation limits after the 2013 haircut
Hadjicostis also referred to compensation limits imposed on bank employees following the 2013 haircut, saying workers who contributed to provident funds throughout their careers were subject to restrictions that did not apply elsewhere.
In support of that argument, he compared the compensation available to affected bank employees with benefits received by former elected officials, citing former finance minister Haris Georgiades.
The union said employees who contributed up to 10 per cent of their salaries over decades of service were capped in the compensation they could recover due to losses incurred during the banking crisis.
Review of union activity and labour agreements
Addressing delegates, Etyk secretary-general Christos Panayides reviewed the organisation’s activities over the past year and referred to collective agreements concluded with banking institutions, including the agreement with Societe Generale.
Panayides said the agreement with Societe Generale introduces a four-day working week under a collective labour agreement in Cyprus.
