Hellenic Bank and the union representing its employees, Etyk, have finalised a new collective agreement, based on the preliminary accord reached in April 2023 with the mediation of the Labour Minister.
This agreement, which marks the renewal of the contract initially due in 2018, will retroactively cover the period from January 1, 2019, to December 31, 2022, impacting roughly 2,200 bank employees.
The agreement aims to align the remuneration of former Cyprus Cooperative Bank employees with the rest of Hellenic Bank’s workforce, creating a consistent structure in terms of duties, obligations, and pay across the bank.
Under this new agreement, Hellenic Bank has committed to a 3 per cent contribution to the staff welfare fund, while contributions to the provident fund will be set at 9 per cent.
It also includes the promotion of employees whose advancement had been pending since 2018 and the elimination of the Monday afternoon working hours for staff.
What is more, according to reports that emerged on Thursday, the contract further incorporates the Eurobank Group’s compensation policies, aiming to offer financial incentives for staff who demonstrate high productivity and meet set targets.
Despite the fact that the renewal of the collective agreement had been pending since 2018, as mentioned above, the bank’s management continued to grant staff both the annual increment and the Cost of Living Allowance (CoLA).
The annual cost of paying CoLA and the flat annual increment for each banking institution is approximately 8 per cent.
Notably, Eurobank CEO Fokion Karavias assured Hellenic Bank’s staff during a press conference in Athens last March, attended by Cypriot journalists, that following the acquisition of Hellenic Bank, there would be full respect for the bank’s employees.
“Hellenic Bank has many great members of staff and we want to work with them and utilise them,” Karavias said at the time.
Eurobank, which acquired a further 12.848 per cent stake in Hellenic Bank from Etyk in a transaction worth €243 million (€4.58 per share), expressed support for the workforce, reiterating its intention to respect and uphold the rights and benefits of Hellenic’s employees.
Following this acquisition, Eurobank’s stake in Hellenic Bank will increase to 68.81 per cent, further cementing its position as the bank’s dominant shareholder.
Additionally, Eurobank is expected to make a public offer for the remaining shares in Hellenic Bank, in accordance with Cypriot public takeover regulations.
The transaction, however, is pending regulatory approval and is anticipated to complete by February 2025.
In a related development, Eurobank has acquired an 8.58 per cent share in Demetra Holdings Plc from Etyk, further consolidating its influence in the Cypriot market.
This latest move is worth a total of €32.4 million, corresponding to €1.89 per share. It should be noted that Demetra holds a 21.3 per cent stake in Hellenic Bank.
