NATIONAL CARRIER Cyprus Airways (CY) has instructed its lawyers to appeal a court ruling that ordered the airline to pay the remainder of a pilot’s wage cut, which came as part of the restructuring plan adopted in 2005.
The decision threatens to add further woes to the airline, in that it now faces the possibility of the rest of its pilot staff seeking compensation for the wage cuts implemented the last five years.
A Labour Court ruled on Tuesday that CY had wrongly cut the wages of pilot Chrysanthos Hadjichrysanthou in 2005 and ordered that the airline pay him the remainder, €13,000, roughly representing the 10 per cent cut from his original wage.
The judgement only applies to the first of five years that Hadjichrysanthou had his wages cut (2005-2009) as plaintiffs are only allowed to submit an application for a 12-month period. He is also expected to seek compensation for the wage cuts during the remaining period. The ruling has increased the chances of more pilots following suit.
CY spokesman Kyriacos Kyriacou said the airline would instruct its lawyers to file an appeal, highlighting that in any case, the court decision ruled on the case of just one pilot – not all.
“CY has the right to judge each case separately on its merits. Just because one went that way, doesn’t mean they all will,” he said.
“The board and management will study the decision carefully, and take a decision which will secure the legality, viability and growth of CY,” he added
Kyriacou argued that if wage cuts were not implemented in 2005 as part of the airline’s rescue and restructuring plan to save it from going under, then there would be no company today.
“If these cuts were not made, there wouldn’t be a company today for people to take to court, which is their right of course.”
He was also quoted by the state broadcaster saying that the airline had debts of €150m.
Andreas Pierides, head of the airline’s largest union CYNIKA fears that the decision will create big problems for the company and threaten its viability.
Chairman of Eurocypria, Eleftherios Ioannou, said on a daytime news show that “full implementation of this decision for the entire staff will also mean shutting up shop. It means workers will get over €60m”.
Spokesman for CY pilots’ union PASYPY, Christos Achilleos said the cuts imposed on pilots were disproportionate compared to other staff.
“There was such a difference between what was cut from us compared to other staff, creating a feeling of injustice,” he said.
Meanwhile, the pilot’s lawyer Constantis Candounas, said yesterday that he also represented other pilots. He noted that the employee was obliged to a make separate appeal for every 12 months to retrieve what was owed, adding that he was optimistic that the decision to award the pilot compensation would not be revoked in the appeal.
Regarding the 2005 decision to cut pilots’ wages as part of the airline’s rescue and restructuring package, Candounas argued that the EU only approved the package because it had been misled.
“The EU agreed after being misinformed that all the unions had agreed,” he said, adding that the pilots union had not agreed to the wage cuts.
