Cyprus Government hands over Cyprus Airways restructuring proposal

Minister of Labour and Social Insurance Sotiroula Charalambous has handed over to the Cyprus Airways Board of Directors and the employees union on Wednesday the government’s plan for the company’s restructuring.

A two day deadline, ending at midnight on Friday has been given to both parties in order to reply to the proposals of the Ministerial Committee.

The proposal was drafted bearing in mind a series of meetings between all sides concerned with the mediation service of the Ministry of Labour.

The government’s plan provides for the redundancy of a significant number of Cyprus Airways employees, tiered salary reductions and a variation or elimination of a number of benefits the employees currently enjoy.

In statements she made after delivering the proposal, Charalambous said it was a difficult process, remarking on the contribution and understanding shown on behalf of the unions.

“It is not easy to ask for the alteration of conditions of employment”, she said, adding that “I would like to think that all sides are committed to a common goal”.

She noted that the government’s central aim is to help the company find a strategic investor, who will not only make it viable but will also turn it into a profitable one.

Charalambous further said that the two sides had been given a letter by Minister of Finance Vassos Shiarly stating the government’s approval of the mediation proposal and its intention to go ahead with preparations on a Bill providing for an increase of the company’s share capital.

She confirmed that the agreement which has been signed as regards motives given to airlines in order for them to attract passengers will be evaluated. If there are any problems of implementation then the government will ask airlines for strict compliance with its provisions, she added.