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.
Financial Services Financial And Insurance Activities Financial Service Activities, Except Insurance And Pension Funding 64 - Financial service activities, except insurance and pension funding
60 jobs Number of planned job losses
Announcement Date
31 October 2005
Employment effect (start)
Foreseen end date
Description
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.
Sources
1 November 2005: Politis
9 September 2005: Cyprus Mail
8 September 2005: Phileleptheros
28 October 2005: Phileleptheros
Citation
Eurofound (2005), Arab Bank, Internal restructuring in Cyprus, factsheet number 62256, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/62256.
Digitisation and automation technologies, including artificial intelligence (AI), can affect working conditions in a variety of ways and their use in the workplace raises a host of new ethical concerns.
The retail banking sector is fertile ground for studying the impacts of digitalisation on work and employment. Financial services are increasingly provided online, without the intermediary of customer-facing institutions.
European labour markets have recovered strongly from COVID-19. By the end of 2021, little more than 18 months after the start of the pandemic, employment rates in the EU were almost at pre-crisis levels.
