Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
On 6 September 2005, the former Country Manager of Arab Bank in Cyprus,Mr. Jack Beighton, announced to the Minister of Labour and Social Insurance the company's decision to close down its operations in Cyprus. As a result the 176 employees currently in place will be made redundant. The bank,operating in Cyprus since 1984, has been scaling down its operations since December 2004, as a result of rising labour costs, a plan that involved the redundancy of around 70 employees. Its current decision to stop business activity in Cyprus, is the result of failing to reach an agreement with the Cyprus Union of Bank Employees (ETYK), and accept a mediation recommendation from the Ministry of Labour.
After almost two months of difficult negotiations, the Arab Bank and the Cyprus Union of Bank Employees (ETYK), managed to reach an agreement that recalls the formerm's decision to cease operations in Cyprus and dismiss its 176 employees. According to the content of the agreement, that was accepted by the majority (100 employees) of the employees in Arab Bank, the bank agreed to pay compensation in the range of CYP 2.5 million, representing 8-week pay for each year of service of the 60 dismissed employees, over and above the compensation from the Redundancy Fund.
Eurofound (2005), Arab Bank, Internal restructuring in Cyprus, factsheet number 62256, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/62256.