Daily Press Review - 9/10/2019

Open war over labour relations at banks

The war of the unions and ETYK against the Cypriot banks, former banks and payment solution companies has begun. After an admittedly calm year, with the unions and the employers’ side not signing the collective agreements, it was certain that the climate would start being electrified. On the one hand ETYK will go on a 2-hour strike on Thursday at JCC, while on Friday it will hold a 24-hour strike at Hellenic Bank. On the other hand, SEK and PEO announced a strike for the coming Monday, if KEDIPES and Altamira do not sign a collective agreement. While the banks had provided the banks with incremental pay rises and the Cost of Living Allowance in 2018, they haven’t proceeded to do so in 2019. At the same time, while it was expected that the banks would unite in order to create a single front to respond to the demands of the unions with a view to sign collective agreements that are based on the needs of the banks, this does not seem likely at the moment. A new front was created between Hellenic Bank, AstroBank and AlphaBank. Bank of Cyprus (for which it was leaked that it would be on the same front as the aforementioned banks), seems to have made concessions and is now going through a grace period with ETYK. As the paper learns, there is good climate and understanding between BoC and ETYK and this will not change in the immediate future. Let’s not forget that a Voluntary Retirement Scheme is currently running at BoC, a product of negotiations between the bank and the union. As it comes to the collective agreements and a renewal, the two parties are currently in negotiations. Therefore a conflict seems unlikely. Hellenic Bank is now engaging in an open war against the union and does not seem to have Cyprus’ biggest bank on its side. Hellenic Bank however has announced its intention to give 2% raises to all of its employees, while at the same time the total raise for each employee could reach up to 7%, depending on performance and evaluation. This is the same employee reward scheme that the Bank of Cyprus had intended to introduce after 2017. However, ETYK did not agree and the bank didn’t proceed. History however points to the fact that when ETYK negotiates with each bank separately, they will satisfy their demands. The same happened, although for a short period of time, with Bank of Cyprus, and the same may happen for Hellenic Bank and the smaller banks.



ETYK has a different stance from labour unions

The labour unions and ETYK have each issued announcements analysing their position on the developments at Hellenic Bank. The bank employees union (ETYK) mentions that Hellenic Bank wants to abolish pay scales, incremental pay rises, the Cost of Living Allowance, promotions/upgrades, while its ultimate goal is to abolish permanency. “Why isn’t Hellenic Bank complying with the decision of the Minister of Labour? Why isn’t OEV advising Hellenic Bank to respect the labour institutions and comply with the decision of the Minister of Labour?”, the union asks. OEV believes that the bank’s management is obliged to proceed with modernising reforms, to the benefit of the productivity of its operations as well as the employees themselves, who it doesn’t intend to treat unfairly; on the contrary aims to actively reward those who deserve it. “In a period where Hellenic Bank is making a huge effort to reduce NPLs, to absorb the Co-op’s business and adopt reforms to the benefit of the employees, any conflict will not only damage these efforts, but will be a regressive step with all the negative consequences that may follow”, KEVE reports. It calls on ETYK to suspend strike action so that a constructive dialogue is conducted with a view to find a mutual agreement that will benefit both the employees and the bank.



Ready to fight

Certain banks are ready to fight in order to reduce their personnel costs, in a period when their income base continues to be challenged due to the NPLs and the low interest rates. At times, the employer side of the banks has leaked that it fight with ETYK at the negotiating table, believing that the banking sector cannot bear an additional increase of labour costs or maintaining the current state of affairs. However, the unilateral decision by Hellenic Bank to give pay rises to 2.500 employees, thereby marginalising its collective agreement with ETYK and the new negotiation, creates a new state of affairs. The bank employees union (ETYK) has announced a 24-hour strike on Friday. Whether employees will participate in this strike, will determine how the next day is handled. The backstage deliberations are expected to have their own part. The Minister of Labour, Zeta Emilianidou wasn’t available to comment on the developments, saying that public statements at this time, will not help any side. It is not ruled out however, that the Ministry of Labour will intervene in order to avoid a situation that may affect the financial sector. How Hellenic Bank will evolve, will serve as a compass for the rest of the banks, which at the moment are obliged to renew the collective agreements that have expired.



ETYK insists on strike

Hellenic Bank’s decision to proceed with giving out pay rises to all of its personnel did not convince ETYK, which with a new circular insists on holding the 24-hour strike this coming Friday, 11 October, demanding the implementation of the current obligations of the bank. “It is not complying with the decisions of the Ministry of Labour, because it wishes to circumvent the current agreements and the labour relations and deregulate labour relations, pushing its colleagues back to medieval working conditions”, ETYK mentions in its circular, rejecting Hellenic Bank’s move. ETYK promotes an institutional argumentation (to maintain a methodology of entering into a collective agreement) and believes that Hellenic Bank’s management does not want to enter the collective agreement rationale in order to abolish pay grades, pay rises, Cost of Living Allowance, upgrades/promotions, and in general not follow any obligation that comes from the Code of Labour Relations. ETYK threatened to escalate strike action while it has reported members of Hellenic’s management for illegal (according to them) actions, in order to prevent employees from joining the strike. They have also called for legal measures.







Investments at the centre of discussions at trilateral meeting

During yesterday’s trilateral meeting, Anastasiades, Sisi and Mitsotakis did not only condemn the Turkish provocations in the Eastern Mediterranean, as they also discussed the resumption of cooperation between the countries. Investments and the involvement of the private sector were at the centre of discussions, while a double tax treaty was signed between Cyprus and Egypt. Moreover, a memorandum was signed between the Investment Promotion Organisations of Egypt, Greece and Cyprus. The President of Egypt stressed his desire to increase mutual investments, in order to fully take advantage of the cooperation. He also welcomed the agreement with which the countries will not tax their mutual investments. He also condemned the efforts of countries which create crises in the region through terrorism.



Cyprus failed to absorb €400m from ESIF

Cyprus failed to absorb €400m from the European Structural and Investment Funds (ESIF) at the end of 2018. This means that it hasn’t spent 4.3% of the general government expenditure in 2018, ranking it as a country that doesn’t have a good absorption mechanism but certainly not the best. This is what the graph on outstanding commitments of the member states from specific European Funds, based on the annual report of the European Internal Audit Forum for FY2018. According to the information of the audit forum, the Netherlands is the champion of absorbing European funds as it only left €800m unused.

 

Turkish embargo on Cypriot shipping is an ‘Achilles heel’

In her interview to CNA yesterday (above), Deputy Minister of Shipping Natasa Pilides was asked whether the developments in Cyprus’ Exclusive Economic Zone with the arrival of Turkish drillships created any problems for Cypriot shipping. She said they did not create any particular problems, other than the fact that they are “creating tension in the region which is definitely not something we would like to see continue”. She was also asked whether the Turkish embargo on Cypriot ships was an “Achilles heel” for Cyprus shipping, to which she responded that it was, adding that efforts had been made in the past to resolve this problem. However, she was of the view that this was a matter that would have to be dealt with as part of the negotiations to resolve the Cyprus problem; provided these are resumed.



Shipping at the level it deserves

Phileleftheros comments that prestigious personalities from the international shipping industry are currently in Cyprus to participate in Maritime Cyprus 2019, hold contacts on the side-lines and actively express interest in investing in the immediate future. It says the island already has significant potential when it comes to the shipping industry, and everyone wants their investment share. Indicatively, shipping stakeholders from Europe, the Middle East and even farther away attended a welcoming party that was held at a Limassol hotel to mark the 30-year anniversary of Maritime Cyprus. International shipping stakeholders have already laid the foundations for future collaborations with reliable partners in Cyprus and their presence at the conference sealed the continuation of mutual partnerships in the evolving and promising shipping sector. The paper says this is a sector that is being highlighted to the degree that it deserves, what with the establishment of the Deputy Ministry of Shipping with deserving people at its helm, who are opening the prospects for even more positive developments in the future.



Ozersay’s response to Mitsotakis on Turkish drilling in the Cyprus EEZ

The article reports that so-called Foreign Minister of the occupied areas, Kundret Ozersay appeared highly annoyed by the statements made by Greek Prime Minister Kyriakos Mitsotakis. According to the Turkish Cypriot Vatan newspaper, Ozersai said: "If the Greek Prime Minister is looking to blame for a unilateral deal he should turn to the right side, i.e., the Greek Cypriot leadership’s actions (as he calls the Republic of Cyprus)" and added that the Greek Cypriot side acted unilaterally by granting licenses inside Turkey's shelf, and even attempting to authorize blocks that coincide with the Turkish shelf in violation of international law. "From this point of view, the violation of these illegal actions by the Greek Cypriot side, even Turkey's drilling activities within the continental shelf, cannot be natural. Why doesn't Greece say a word when the Greek-Cypriot side seizes our rights, the rights of Turkish Cypriots by granting illegal licenses to ENI and TOTAL?" "We, as the TRNC (as the Turkish Republic of Northern Cyprus), support Turkey for carrying out the drilling activities within its continental shelf, west of Cyprus."



Sir Stelios to open an Easy Hotel in Nicosia

Cypriot business tycoon Sir Stelios Hadjioannou plans to open an Easy Hotel and Easyhub, which is an office rental service, in Nicosia, according to statements he made to Kathimerini Economy newspaper on Tuesday on the side-lines of the annual Stelios Cyprus Bi-Communal Awards 2019. He also said during the event that he expected that air fares would increase marginally, but not to the extent that they will seriously affect tourism traffic to Cyprus. The businessman told the paper that the Nicosia market is very promising, especially for the operation of an Easy Hotel.



All eyes on airline routes

Cyprus airports’ operator Hermes Airports and the Deputy Ministry of Tourism are expected to announce the winter airline schedules in the coming days. Both Deputy Minister Savvas Perdios and Hermes have completed an extended tour of the European and Gulf countries in a bid to broaden their contacts and draw up agreements with airlines. Both sides left with positive indications over the development of new flight schedules. In fact, contacts are underway with a specific airline to include additional flights. The key to Cypriot tourism is central Europe (Germany, France and The Netherlands), according to Phileleftheros. Hermes’ efforts are focusing on developing new markets as well as new routes with existing markets that have margins to improve connectivity. Such markets include Switzerland, Germany and Ukraine. Meanwhile, the Deputy Ministry is planning to open offers to attract airlines to become based in Cyprus in the 2021-2022 season. Cyprus Airways has already announced that it will soon begin an effort to promote Cyprus to new markets, while it has also announced an agreement with Sky Express. According to Hermes Airports’ seven-month results, the biggest player at Larnaca airport is Aegean Airlines with 12%, followed by Wizz Air (9%), Rossiya (9%), Blue Air (7%), Cyprus Airways (5%), EasyJet (4%), Aeroflot (3%), British Airways (3%), Je2.com (3%) and TUI (3%).

 

 

Following the shock, hoteliers are getting back to work

Two weeks after the shock announcement of Thomas Cook’s bankruptcy, the Cypriot hotel industry appears to be getting back on its fee. Paphos, whose hotel industry was the worst hit by the tour operator’s collapse, is counting its losses, as it has been paid for the services it offered in July, August and September. The losses for Cyprus are estimated to be in the range of €40.5m for 2019. The losses for June, July and August alone are estimated at some €30m. Meanwhile, the Deputy Ministry of Tourism estimates that of the 25,000 Brits who were scheduled to visit the island by the end of the year, 10,000 have been covered by other airlines. The loss of 15,000 British tourists will lead to additional losses of €10.5m. Hotels in the Protaras and Ayia Napa resorts are relieved as they hosted the majority of Scandinavian tourists, with the Scandinavian subsidiary having compensated them for the majority of services provided over the summer season.



Counting their losses

Tourism enterprises continue to gather data to determine the exact extent of the losses they have suffered from Thomas Cook’s collapse. At the same time, the government is approaching the hotel industry’s demands to mitigate the losses in a positive light. The most likely scenario is that the businesses that were seriously affected will be given a grace period to pay taxes and insurance obligations and fees.

 

Hoteliers are joining forces

The Cyprus Hotels Association (PASYXE) and Association of Cyprus Tourism Enterprises (ACTE) are to meet at a joint general meeting to discuss and reach a final decision on the renewal of the hotel industry’s collective agreement. The meeting will take place around 21 October, according to Politis’ sources, as ACTE is meeting today and will decide on dates proposed by PASYXE. The two associations are to decide whether to accept the Labour Ministry’s compromise proposal for the renewal. The hotel employees’ unions have already accepted the proposal. Thomas Cook’s collapse has raised concerns and objections among hoteliers over the proposal’s contents, which have been intensifying further as the days go by, the paper comments.

 

Limassol planning for the next seven years

The Mayor of Limassol, Nicos Nicolaides, on Tuesday announced the municipality’s development plan for the city, which will span from 2021 to 2027. The announcement was made at a time when the municipality is facing a storm of reactions and protests over projects that never happened or that began and are now problematic, the shortcomings in community and other sectors, but also decisions and plans that deviate from the best interests and needs of the town and its residents. Analysing the new strategic plans, Nicolaides said the focus will now be on upgrading the western and southern estates of Limassol. There will be specific actions and projects in these areas, as well as the broader urban centre of Limassol.



Chr. Mavrellis: Cypriots are gamblers by nature

In the context of the Responsible Gaming Awareness Week Christos Mavrellis, the chairman of the Cyprus Gaming and Casino Supervision Commission, said that Cypriots are gamblers by nature. “Gambling is not something that should be used to solve financial problems, but simply as a game”, Mr Mavrellis states. He added that the satellite casino of Paphos is expected to be launched at until the end of the year, and the “big casino-resort” in Limassol is under construction and is expected to operate at the end of 2021.



First look at the casino in Hellenikon

Brief.com.cy publishes a video of the first Integrated Resort and Casino – IRC, which aims to become the trademark of Athens. Mohegan Gaming and Entertainment (MGE) presented the mock-up of the casino-resort, which has been inspired by the Caryatids and references the architectural past of Athens. The casino will be named INSPIRE Athens and it has been created by the international architectural office, Steelman Partners.



25,562 beneficiaries changed their personal GP

Since 1 October and until yesterday noon, a total of 25,562 beneficiaries registered in the GHS changed their personal GP. However, the GHS’ software is unable to provide the HIO with percentages as to adult or children changes, but given the increased registrations of paediatricians in the system over the past couple of weeks, a larger percentage of paediatrician changes is to be expected. Specifically, until yesterday there was a total of 150 paediatricians registered in the GHS, of which only 38 are state doctors. This number is expected to increase further in the upcoming days, as more paediatricians expressed intention to join the system, mainly in Limassol. An increase was also observed in the number of GPs for adults who are registered in the system, which certainly resulted in some changes among adult patients as well. Yesterday afternoon, there were 414 GPs, out of whom 304 were of the private sector and 110 of the public sector. Phileleftheros also reports that while the HIO appears satisfied with the number of registrations so far, Okypy is rushing to hire doctors to cover the needs of the A&E departments across all state hospitals. Phileleftheros’ sources report that today, Okypy begins the assessment procedure of applications submitted by Greek doctors. Reportedly, the number of applications is rather limited, but it’s considered to be sufficient in order to cover the departments’ immediate needs. Politis also reports that Okypy continues to work towards a solution for the A&E departments, by assessing Greek doctors’ applications as more state doctors resign from their posts in the A&E.



The GHS’ software is down

Haravgi reports that yesterday the GHS’ software was temporarily down for around two hours across Cyprus, leaving all hospitals unable to assist patients. In a written announcement, the HIO informed all health professionals and the public that around 11:05 the GHS’ software presented a technical problem, which temporarily rendered it inoperable. But it was noted that the problem was resolved by 12:20 and all of the system’s functions were restored and available to use, and the HIO apologised for any inconvenience.

 

Averof and Andros thrown into battle

Yesterday, the president of the ruling party Disy Mr. Averof Neophytou, and the secretary-general of AKEL Mr. Andros Kyprianou, started convening with European officials and MEPs in order to prevent the restoration of the issue of direct trade with the occupied areas. Meanwhile, Averof Neophytou and Andros Kyprianou, intend to brief MEPs on Turkey’s provocations in Cyprus’ EEZ and Famagusta. DISY’s president, is in Brussels in the framework of the Heads of State meeting at the Bureau of the European Parliament, while AKEL’s secretary-general is in Brussels in the context of an event for the Cyprus Problem. Averof’s visit to Brussels also aims to “either withdraw or maintain the issue of direct trade with the occupied areas closed, as it conflicts with European law” a written announcement reports. Additionally, Andros Kyprianou stated that he also seeks to maintain the issue of direct trade in its previously “frozen” status.