Bank of Cyprus staff protest against debt collection outsourcing

NICOSIA – Staff workers in the troubled Bank of Cyprus’s debt collection and restructuring unit said they would walk out for two hours on Nov. 25 to protest plans to let outside agencies take on some of their work.

In a circular, the union ETYK said it would step up protests across the group “since the danger from the administration’s actions threatens all colleagues,” the Cyprus Mail reported.

“The bank’s intention to unilaterally assign work to outside associates at will and in violation of current agreements and labour statutes shows the management’s real intentions regarding employment but also the clear danger for our members’ jobs in the near future,” the union said.

ETYK said said there were also other examples that showed the management’s contempt towards the agreements and staff, including pressuring workers to quit the union and giving work to outside units in violation of agreements and forcing workers to stay overtime without being paid.

There was no immediate response from the bank as the actions came on the heels of the bank posting losses of 553 million euros ($649.9 million) for the first nine months of the year. At the end of June, bad loans stood at 9.7 billion euros ($11.39 billion,) half of its entire portfolio.

Cypriot banks in 2013 were teetering because of bad loans to Greek businesses who wouldn’t repay them and big holdings in Greek bonds that were devalued by 74 percent in a futile attempt by the Greek government to write down debt.

That led then newly-elected Cypriot President Nicos Anastasiades to renege on campaign promises and authorize banks to confiscate 47.5 percent of accounts of more than 100,000 euros ($117,400) to save the institutions from bad management before he failed to investigate their role as he promised, exempting them from any punishment.