CYPRUS AIRWAYS (CY) and its unions yesterday signed an agreement providing for a 9.0 per cent cut in salaries for one year and other measures designed to contribute to a bigger scheme to rescue the airline.
The deal, drafted with the help of the labour ministry’s mediation service, basically spells out the workers’ contribution to the effort to save the ailing airline
“What prevailed was common interest,” Labour Minister Sotiroulla Charalambous said. The minister thanked the five unions for showing a good spirit of cooperation, which helped the ministry submit a mediating proposal that was accepted and signed in the form of an agreement.
The agreement provides for a 9.0 per cent cut in salaries for a year but does not include the Christmas bonus.
Salaries up to €2,000 will have the first €500 exempted.
The agreement also provides for a three-day cut in vacation days for all staff.
It is also stipulated that “the two sides will make an effort to cut overtime by 30 per cent and sick leave by 40 per cent,” a condition, which implicitly means there has been an abuse of the system in the past.
The agreement is part of a rescue plan whose main provisions involve measures by the company to save €30 million and the workers contributing another €12 million — €7 million through pay cuts and the rest through shedding 140 jobs from a total of around 1,200.
The redundant staff will receive 60 per cent of their compensation by the end of May this year and the rest by the end of May 2012.
The government has also pledged to give the company €20 million in the form of compensation for the extra cost incurred by the airline since 2004 due to a ban on using Turkish airspace.
Speaking after signing the agreement yesterday, PEO representative Antonis Neofytou said he hoped this was the last time.
“But we expect, for this effort to be complete, parliament to approve the bill for granting €20 million,” Neofytou said.
The pilots said they have done their bit towards the rescue effort and “we are certain that CY has a future and the company will be present to provide better days to us all.”
