Union employees at Cyprus Cooperative Bank have agreed to sign up on a severance package plan, ahead of a takeover by Hellenic Bank, saying it can contribute to labour peace.
According to the plan, 1100 employees will move over to Hellenic Bank while the remaining 650 will stay behind in what has become Altamira Asset Management in Cyprus.
The remaining 900 employees who will not move over to either of the two entities, will be offered a tax-free severance package.
The compensation amount, which is to be calculated as Years of Service x Annual Gross Salary x 26%, cannot exceed €180,000.
A compensation amount calculated as Years of Service x Annual Gross Salary x 26% cannot exceed €180,000
The plan will go into effect on the day an official announcemtn is made and the eligibility period will last for two weeks.
Employees who will choose to walk away will also receive a benefits package up to three years, including health insurance, life insurance, social security.
They will also receive credit financing protection, meaning that those who received beneficial interest rates on loans, as long as they are not in the red, will continue to keep low rates and the new entity will pay the difference should those rates go up.
Employees who voluntarily walk away will also receive paid leave, depending on how many days have not been used in 2018.
Average payouts are expected to range between €45,000 and €80,000, with a minimum first installment being no less than €20,000.
All employees regardless will receive any of their bonus salaries that are owed to them lawfully.
Date of termination is set for August 31, while employees will be allowed to walk away sooner in special cases, including having other job offers.
However, those who find employment or become self-employed, will not be eligible for the full three years additional benefits package.