The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Financial Services Financial And Insurance Activities Financial Service Activities, Except Insurance And Pension Funding 64 - Financial service activities, except insurance and pension funding
450 jobs Number of planned job losses
Announcement Date
21 April 2022
Employment effect (start)
1 December 2022
Foreseen end date
Description
The restructuring plan of the Hellenic Bank, which will be submitted to the Ministry of Labor, includes the redundancies of between 300 to 350 employees, as part of the mediation that is underway for the renewal of the collective agreement. This was announced during the presentation of the financial results of Hellenic Bank on the 21st of April, by the CEO of the Group, Oliver Gatzke, who noted that the changes are expected to be implemented some time this year to address the Bank's losses of 11.7 million euros in 2021.This comes as a confirmation of the warning of the Cyprus Union of Bank Employees to its members, that the company plans to dismiss up to a total of 1000 employees, 350 of them immediately and the rest by the end of the year. The total number of the planned redundancies will be determined by the willingness of the trade union to accept a decrease of, inter alia, wages and the contributions to the Health, Providence and Social Benefits Funds. ETYK reports that the Bank is guilty of the criminal offense of wage theft, since it is ignoring the proposal of the Ministry of Labor (dated 10th of June 2021) for the immediate inclusion of all the staff of Hellenic Bank in the ETYK salary scales. In addition, the trade union reports that the cost of Hellenic Bank per employee is 20% lower than the cost of other banks in Cyprus, while the Bank's revenues in proportion to the other banks in Cyprus are 40% lower, and that is what the trade union considers the real problem. On the 2nd of May 2022, the management of Hellenic Bank sent letters to ETYK and other trade unions, informing them that it is proceeding with the implementation of the bank's transformation plan, which also includes the redundancy of surplus staff.
UPDATED 03/11/2022
The management of Hellenic Bank is finallizing a voluntary exit plan, aiming to encourage approximately 500 people to retire. The Plan provides that the one-time amount of compensation will be up to 200 thousand (expected to be tax-free); the maximum amount of gratuity compensation will not exceed 70% of the remaining wages until normal retirement. The bank will continue to provide medical coverage through the trade union's health fund for two years from the date of the employees' departure, which will also cover existing dependents of departing employees who are already registered with the fund. Finally, insurance cover will continue to apply for two years after the date the employees retire.
UPDATED 30/11/2022
Hellenic Bank has announced today the completion of its voluntary early exit plan. The plan was deemed successful, as around 450 employees (circa 17% of the Group's employees) have been approved to participate in it. The expected total cost of the plan sits at about 70 million.
Eurofound (2022), Hellenic Bank, Internal restructuring in Cyprus, factsheet number 107679, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/107679.
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