CAIR unions agree to more talks

The five unions representing staff employed at Cyprus Airways agreed to new talks with management in an attempt to bridge the gap between the two sides regarding the level of cutbacks and cost savings that management is attempting to win in order to save the airline.

CAIR Chairman Lazaros Savvides told reporters that talks would have to begin by Wednesday “at the latest” to discuss the restructuring points aimed at saving CYP 21 mln annually. The plan needs the approval of the European Commission before the government will be authorised to guarantee new loans for the airline to keep it afloat.

Unions have rejected most management cost cutting measures, describing them as one-sided and instead made their own counter-proposals, which were discussed last week but led to a deadlock. A crisis meeting involving government ministers on Friday raised hopes that an agreement could be reached after the unions were offered more generous compensation for those to be made redundant. Some 500 employees, more than one third of the workforce, are slated to go under the restructuring plan. This is around 150 more than the original plan called for, and includes pilots, engineers, ground staff, janitors and desk employees. In an effort to win union support, the government improved the redundancy terms, something which is now being discussed by the unions.