Bank workers ready to take a hit but ‘managers should take a bigger one’

BANK workers are prepared to assume a “reasonable cost” during the economic crisis but want managements to cut their income and bonuses, it emerged yesterday.

A circular from their union ETYK, published by the Cyprus News Agency, said that in light of the upcoming negotiations to renew the collective agreements, workers were prepared to foot a “reasonable cost” but management should assume a bigger one.

ETYK wants a pledge that while there is an economic crisis, managers would not receive any bonuses while total annual revenues should not exceed a “reasonable amount”.

ETYK said it did not make public any details on the negotiations concerning the collective agreement but it appeared that officials of a “certain” bank have been systematically leaking information to the media, believing they are supporting their objectives.

The union said it had never agreed to any pay or allowance freezes and has also made a proposal that will cut expenses by €100 million and satisfy its demands.

“Our organisation has restricted itself to demands with no financial cost, aiming at the smooth operation of banks and improving the quality of our colleagues’ work,” ETYK said. “So far, it seems that bank managements do not aim in containing costs and resolving problems, but are using the crisis as an excuse to plunder the rights of bank employees.”

Banks have reported heavy losses in the first nine months of the year due to their exposure to Greek debt.

The island’s largest lender the Bank of Cyprus posted an €801 million net loss after provisions, followed by Marfin Popular with a €282 million loss and Hellenic with €72 million losses.

Bank of Cyprus and Marfin hold considerable quantities of Greek debt, and both have been urged by regulators to bolster their capital buffers by mid-2012.