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Surpluses in KEDIPES due to project failure

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Surpluses in KEDIPES due to project failure

Theano Thiopoulou

The administration of KEDIPES is closer to activating the redundancy process, as the results of the staff participation in the voluntary exit plan were meager – at least until noon on Friday. According to information from “F”, the exit button was pressed by only a few dozen, not exceeding 40 employees, while the goal was to leave 100 to 130 people out of a total of 390.

Although the end of the project is formally by Sunday, however, the state entity expresses the view that the goal will not be achieved to leave at least 260 employees at this stage. It is expected that a small extension will be given until Monday morning, probably until 10 am, and then in an extraordinary meeting the Board of Directors will determine the next moves, evaluating the results of the voluntary exit plan. Already in a meeting that took place last Wednesday, the Board of Directors authorized the management of KEDIPES to follow the legal procedures and to launch what is required for the surpluses and to start the consultations with the unions. From the point of view of the state entity, the view is expressed that it has been done the best possible, in order to avoid the activation of the bad scenario which is the surpluses, characterizing the plan as generous for the employees.

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Up to 130 employees ready to leave KEDIPES Minimum in the exit plan of KEDIPES Aim to stay 260 people in KEDIPES

The gratuity compensations given to the employees are up to € 180 thousand and according to sources of “Φ” from the total of 390 employees a percentage of 20% to 25% falls within the maximum compensation.

As for the staff of 150 employees of the former SKT located in Altamira, about 70% to 80% have accepted the plan and a very small number have asked to return to KEDIPES. The state-owned company agreed to give Altamira employees three options. Either they choose a specific date to return to KEDIPES, or they accept the voluntary exit plan, or they redeem their service in exchange for a proportional amount of compensation. Returning to KEDIPES is the most difficult part, as the reduction of staff was the reason why the voluntary exit plan came into force. The staff costs of KEDIPES amount to a total of € 45.6 million. until 30/06/2021, where the human resources of KEDIPES amounted to 386 people (of which 87 were staff who have returned from Altamira), while another 151 people of Altamira Cyprus were staff of the former Cooperative Bank of Cyprus. The plan is expected to save about € 15 million in payroll and reduce by 1/3. KEDIPES, as the Ministry of Finance had recently announced in an announcement supporting the choices of the management, is by nature a special purpose company with its operations having a fixed expiration date or which today and based on its existing business plan is the year 2028 The Ministry of Finance had clarified that it is not legally possible to employ part of KEDIPES staff in the wider public sector. For this reason, he called on the staff of KEDIPES, whether it is employed by KEDIPES or Altamira, to take into account all the data that have been put before it by the Board of Directors before taking their decisions.

Source: www.philenews.com

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