Offered incentives to go
Cyprus Airways staff were presented with a take-it-or-leave-it deal from the government on the future of the company, but early indications suggest that the rescue plan is still opposed by some sections of the airline’s unions.
Commerce, Industry and Tourism Minister George Lillikas who is heading the four-member Ministerial Committee entrusted with the negotiations with the unions admitted that the gap between the two sides has not narrowed, despite intense negotiations yesterday morning, before the plan was submitted at 5pm.
“This is a rescue plan, not a restructuring plan,” added Transport Minister Haris Thrassou, justifying the take-it-or-leave-it nature of the final plan.
Unions were given three days to respond, either with their acceptance or a rejection that could culminate in the airline’s closure. But this outcome is seen as highly unlikely, as the government hinted it has satisfied most of the union’s “red line” demands and has given enough concessions.
The Secretary General of SYDYKEK-PEO Antonis Neophytou told ANT TV that the unions would not tolerate exaggerated demands from the employer side. Unions are mostly opposed to plans to hire sub-contractors as well as a government suggestion to freeze wages for five years on top of big pay reductions.
There were also reports of a split among the SYNIKA ranks representing the largest union among CAIR staff as 15 pilot members left the union to return to the pilots’ union PASIPY, and dozens of its 80-100 cabin crew departed to join stewards’ union SYPKA.
The only major achievement secured by unions is a commitment from the government that their provident funds would not be touched in any cutbacks. They also managed to secure a higher compensation package of 3% for those accepting redundancy.
Other concessions include the government abandoning hiking the work-week to 40 hours, ex-gratis bonuses to those opting for early redundancies and maintenance of the present regime for shifts and staff working on holidays.
The airline has warned that if 500 people, or around a third of its workforce, do not volunteer for redundancy, it will have to revert to its original plan to sack 385 and cut the salaries and benefits of the remainder to meet cost cutting targets needed to save CAIR. By last week, less than 200 people had applied to leave. A further 22 chief steward positions will be abolished.
