Arab Bank labour dispute heads for arbitration

The labour dispute between Arab Bank and the Bank Employees Union, ETYK over the redundancy of at least 68 employees will be tabled before the labour arbitration committee of the Ministry of Labour on July 14.

Arab Bank, citing a severe drop in business has already shut a number of branches and wishes to make at least 68 of its staff redundant under EU labour regulations, which according to industry experts will cost it close to CYP 2.5 mln.

ETYK on the other hand, insists that Arab Bank should follow the Cypriot custom of compensating 49 salaries based on the last salary and depending on the number of years employed at the Bank, before staff can be relieved of their duties. The total cost of such a redundancy scheme is estimated to cost at least CYP 5 mln.

Meanwhile, the financial web site Stockwatch reported that the current Manager of Arab Bank in Cyprus, Jack Beighton has resigned from his post and will leave the Bank on 7 September. According to the web site,

Beighton will return to his country, Australia and become the new General Manager of Bank of Cyprus, Australia.

Beighton will be replaced by Sami Macaren, currently heading Arab Bank in Greece.