Most unions agree to Co-op early retirement scheme

A revised EUR 128 mln compensation scheme for 900 Co-op employees opting for the early retirement plan is set to go ahead, as three out of four unions representing employees have accepted it.

The 900 – of 2,650 – CCB employees are to be compensated as they will not follow their colleagues who will join Hellenic Bank following the sale or the new NPLs managing body to be set up by the government.

The scheme provides for staff members to receive compensation with a ceiling of EUR 180,000, while the total amount to be given to redundant employees will reach EUR 128 mln.

Employees opting for the early retirement scheme will also see their medical insurance scheme continuing, until such time as the NHS is operational.

Ex-Co-op employees are to enjoy the same benefits as those who remain at the NPLs managing body.

They will also see their life insurance policy continue, while the government will continue contributing to their provident fund.

Compensations will be paid in three equal installments, on 30 September 2018, 1 June 2019, and 31 December 2019. Employees will be compensated for the remainder of their annual leave on 31 August 2018.

The scheme was revised by the government, the ultimate owner of the CCB after it bailed out the Co-op bank with a EUR 1.65 bln injection four years ago, after pressure from unions who did not tabled satisfactory.

Three of the four unions SEK, PEO and PASYDY have decided to now approve the plan for voluntary retirement, calling on their members to opt for it. However, the fourth union, ETYK, still describes the offer as unattractive.

ETYK feels that the revised plan is nothing to celebrate, it wonders how one can celebrate a plan that gives employees just 10% of what they were asking for.

The unions had tabled the demand for a minimum EUR 100,000 compensation whereas, according to calculations put forward by ETYK, some employees are to receive just EUR 10,000.

ETYK also put forward their concern regarding the fact that payments are to be made in four installments, claiming that there is essentially no guarantee that the CCB will not say it does not have the money to pay out future installments.

The plan will be submitted for approval to a general meeting of CCB’s shareholders next Tuesday, and after receiving the green light, it will be announced to the staff, who will then have until 17 August to apply.

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