UNIONS OF the Cyprus Telecommunications Authority (CyTA) yesterday agreed to call off an indefinite strike until parliament had a chance to examine the government’s request for a €100m loan from the pension fund of the semi-government organisation (SGO).
Three of the five unions representing around 50 per cent of CyTA workers announced on Wednesday they would go on an indefinite strike after the authority’s board decided to lend the state €100m from the workers’ pension fund.
The unions argued the decision was “illegal and irregular”, warning they would continue to strike until the board revokes its decision and its members resign.
The three unions- PASE, ASET and SEP- issued a joint announcement yesterday saying they have decided to postpone strike action until after next Monday when the House Finance Committee will examine the issue.
The unions also received assurances that the finance committee would send a letter to the CyTA board asking it not to take money from the pension fund until parliament gets a chance to discuss the issue.
The workers’ representatives called on all CyTA employees to gather outside parliament on Monday in a show of strength during the House Committee’s discussion on the issue.
PASE head Alecos Tryfonides said the decision was taken after the positive response of parliament to their demands.
“We love our country, we help our state in many ways,” he said, in reference to an earlier loan to the government of €100m by CyTA. “But from the pension fund, from the struggles of a lifetime, the workers’ safety net, we do not want and will not allow any amount to be taken,” said Tryfonides.
The two remaining CyTA unions- SEK and PEO- representing the remaining 50 per cent of staff remained on the fence yesterday.
SEK representative Orestis Vassiliou said the union would not take rash decisions without exhausting dialogue with the government and parliament first.
SEK boss responsible for all SGOs, Andreas Elias, told the Cyprus Mail that the powerful union believes taking a loan from the workers’ pension fund is wrong.
“We have asked the finance ministry and parliament to give us a comprehensive overview of their plans for covering the needs of state finances in the coming months,” he said.
Elias said the finance minister has publicly stated that the immediate financing needs of the state are covered until the end of January.
Given that the Eurogroup won’t examine Cyprus’ request for a bailout until January 21, what SEK are most keen to find out is what happens if the government doesn’t get the bailout money by March, when the loan has to be paid back? Or what happens to the loan if the government doesn’t get the bailout approved at all?
“It’s a logical question, the answer to which we must give to the workers,” he said.
A PEO representative told the state broadcaster that the left-wing union will think very seriously before taking any decision on whether to strike.
Meanwhile, other profit-making SGOs have found themselves in the crosshairs of the cash-strapped state.
The Port Authority has announced a loan of €38m to the state, with a view to adding a further €12m if needed.
The Electricity Authority of Cyprus (EAC) will discuss a government request for a loan today. According to reports, the state has asked for a loan between €80m and €100m from the electricity company.
The EAC union EPOPAI yesterday slammed CyTA chairman Stathis Kittis for calling on all profitable SGOs to throw the state a lifeline so that CyTA did not taken on the burden alone.
The union said calls for the EAC to also grant a loan from its pension fund “misguided and unfortunate”.
The EAC pension fund’s management committee will discuss the request today.
According to sources, the government is considering even more innovative ways to meet its financing needs than a loan.
The government has reportedly reached a preliminary agreement with the EAC and its insurers and reinsurers for an out of court settlement regarding the cost of fixing Vassilikos after the power plant was destroyed by the Mari blast last year.
The insurers have reportedly agreed to pay €132.5m in full to the EAC to cover the cost of fixing the battered plant, €30m of which has already been paid, leaving €102.5m pending.
In turn, the government has agreed to pay the insurers €99m in compensation in recognition of its own responsibility for the blast, while at the same time avoiding a costly legal battle with the insurers.
According to sources, the government plans to give the EAC another €30m instalment from the insurance payout, while temporarily pocketing the remaining €72.5m to cover its own pressing needs, leaving the EAC with another IOU.
This will be added to any loan from the pension fund, in addition to the €24.5m still owed by the state to the authority to cover the cost of renting mobile generators after the naval base blast.