Bank strike to proceed

The militant bank employees union ETYK has decided to ignore calls for restraint and is pressing ahead with a damaging strike action today from 12.30 noon until 2.30pm at all banks in protest of its inability to convince the National Bank of Greece (Cyprus) to yield to its demands.

ETYK and the NBG are in an ongoing standoff with NBG gaining ground over the hiring of two employees from the bank’s Athens headquarters to its Cyprus branch. After ETYK declared an illegal strike at NBG at a time when the majority of NBG staff opposed such action and wished to continue work, the bank retaliated with a lockout. Subsequently about half of NBG staff decided to set up a new union and breakaway from ETYK.

The union called for a nationwide strike for Wednesday from 12.30 noon until 2.30 at all banks and gave instructions to its members employed at all banks, the central bank and the credit card clearing house JCC not to process transactions with the National Bank of Greece.
Last week the union urged employees not to cash any cheques issued by NBG and freeze all wire transfers relating to that bank. But the powerful union has since come under fire for its aggressive tactics.
Yesterday the association of banks sided with NBG, instructing employees to carry out business as usual. ETYK was also blasted by the Employers and Industrialists Federation OEV, which said the union’s latest actions were irregular and illegal.
OEV threatened to “react with all the means at our disposal to protect NBG as well as the thousands of businesses, since ultimately it is businesses who are on the receiving end of these measures by ETYK.”
More importantly, the Central Bank, which has jurisdiction over cheque clearing has decided to intervene and carry out to the full its duty as the banking regulator. The Central Bank has said it is duty-bound to ensure the smooth operation of the sector. Governor of the Central Bank Athanasios Orphanides sent a memo to Central Bank staff to carry on servicing NBG with treasury operations and with clearing of cheques.
On Monday, the Competition Commission stepped in. The CPC warned that unless ETYK lifted its measures, it would launch an ex-officio probe into possible distortion of competition in the banking sector.

The Cyprus Chamber of Commerce and Industry (KEVE) has also sides with NBG and criticised ETYK for its damaging action, with only few days left before the national currency is locked with the euro ahead of euro adoption from January 1, 2008.
NBG General Manager Michalis Kokkinos told the Financial Mirror that there is no going back and that NBG is determined to defend its principles, which are based on EU laws of free mobility of labour.