Cyprus bank strikes called off

The militant bank employees’ union, ETYK, has called off a strike that would have crippled strike at all banks Wednesday from 12.30 to 2.30pm to protest its inability to convince the National Bank of Greece (Cyprus) to yield to its demands.

The union said it accepted a mediation offer from Labour Minister Antonis Vassiliou and has backed down from its initial measures to pressure the bank.

ETYK said it reviewed the situation as well as the general mood in the banking sector earlier in the day, particularly the road towards euro adoption and “has decided to accept the proposal to help restore calm in the workplace and to enhance the fundamentals of the Industrial Relations Code.”

Even though the union had strong-armed its members at all banks to walk out and refuse to process any transactions related to the National Bank of Greece, it threw the ball in the employers’ court saying that it hoped the bank’s management “wiould avoid measures that could torpedo the climate and lead to a new clash.”

It is believed that the Employers and Industrialists’ Federation (OEV) played an instrumental role in the whole conflict and its mediation towards all sides on Tuesday seems to have paid off.

ETYK and the NBG have been locked in a standoff since May with the bank gaining ground over the transfer of two employees from its Athens head office to the 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 broke away from ETYK.

The union called for a nationwide strike for Wednesday at all banks and ordered its members employed at all banks, the central bank and the credit card clearing house JCC not to process transactions for 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 strong-arm tactics.
On Monday the bankers association sided with NBG, instructing employees to carry out business as usual. ETYK was also blasted by OEV which said the union’s latest actions were unethical 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 saying it is duty-bound to ensure the smooth operation of the sector. Governor Athanasios Orphanides sent a memo to Central Bank staff to carry on servicing NBG with treasury operations and with clearing of cheques.
The Competition Commission also stepped in warning 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 sided 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 the common currency’s adoption on 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 movement of labour and capital.