Cyprus Airways, unions reach deal on ground handling

Cyprus Airways, unions reach deal on ground handling

State-controlled Cyprus Airways and the SEK and PEO trade unions reached an agreement on Monday that will allow for the smooth transfer of the national carrier’s ground handling services at Larnaca and Paphos airports to the Swissport GAP Vassilopoulos (Cyprus) Ltd joint venture.

The agreement has averted a strike that the workers had been planning, unless the joint venture or the state ensured their pension rights and other benefits would not be affected.

Labour and Social Insurance Minister Sotiroula Charalambous said that a problem that had been troubling Cyprus Airways’ labour relations had been resolved and the agreement is in the interest of both sides, helping the airline to proceed with its plans and benefiting workers.

Finance Minister Charilaos Stavrakis said the cost of the agreement for the government is not high. He said this depends on the number of people who will opt to leave the company or retire.

Noting that the state is the largest shareholder of Cyprus Airways with a 69.62% stake, he said the government should help with all means possible to secure the carrier’s viability.

“Any turmoil in the company would certainly be catastrophic for the economy,” Stavrakis added.
CAIR board chairman Kikis Lazarides said the government had made a generous contribution to solving the year-old dispute.

He said he hoped that labour peace would prevail and the board as well as the airline’s management will be able to proceed with the implementation of the strategic plan to secure the airline’s viability.

SEK Secretary General Nicos Moiseos said the agreement was approved by the majority of affected CAIR employees.

The Swissport GAP Vassilopoulos (Cyprus) Ltd joint venture will take effect from May, with substantial savings for the company.