Arab Bank dispute heads for arbitration

Arab Bank and the bank employees union, ETYK announced that they have agreed the mediation proposal put forward by the mediator of the Ministry of Labour to settle their differences through arbitration, which will start from Thursday, August 4.

The labour dispute between Arab Bank and the Bank Employees Union, ETYK refers to the redundancy of at least 68 employees. 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.