CYPRUS Airways (CY) biggest union, CYNIKA, representing 1,300 staff members, voted in favour of the controversial action plan designed to save the ailing carrier on Wednesday.
The watered down package of measures agreed in principle by representatives of the five unions, CY management and the Labour Ministry needs the backing of all unions before work can get started to bail out the loss-making company.
According to CYNIKA General Secretary Andreas Pierides, 665 members voted in favour of provisions relating to general staff, while 148 voted against. Regarding shift timetables, 350 voted for and 211 against; on matters affecting air stewards, 72 voted for and 55 against, while on provisions involving the food sector, 28 voted in favour and 63 against.
“Over 800 people voted. It is the first time we have had such a large participation of members,” he said.
Pierides said he hoped the other unions would take into account the “critical situation currently facing the company, so that a solution could finally be found to the company’s problems”.
The airline’s biggest union CYNIKA and two other unions, the engineers’ union ASSYSEKA and SIDIKEK-PEO, have now taken the proposal to its members, who have given the green light for the changes. Pilots union PASIPY, which has warned that its members could still reject the proposals, will not hold its general assembly until January 10, while smaller union SYPKA, has yet to take the proposal to its general assembly but is expected to do so by the end of next week.
The package proposal is the result of recent negotiations between CY management and its unions on a strategic plan to save the government-owned carrier’s finances. CY faces losses of some £30 million for 2004.
Unions have been asked to make concessions on wages and benefits, and to agree to a number of redundancies.
Union representatives agreed in principle to over 200 staff redundancies, and wage reductions ranging from 5-10 per cent, after months of negotiation.
In all, there are 18 proposals included in the compromise, including a suspension in wage hikes for 2005 and 2006, axing of sick-leave benefits and the reduction of Sunday overtime pay by 50 per cent. The proposals also include increasing staff contributions to social insurance from 3.2 per cent to 6.3 per cent and cost-cutting in the catering and engineering departments.
CY needs to save some £22 million to put the company back on its feet, and offset the £30 million expected losses for the year.
Union concessions are expected to save the airline around £10 million. The other £15 million will be saved through changes to routes and other measures to be taken by the company itself.
Even with savings of £25 million in 2005, the airline will still continue to run at a loss until at least 2006, according to forecasts.
As soon as the compromise plan is in place, the government will seek permission from the EU to guarantee new loans for the airline to assist it on the road to recovery.
