Cyprus Bailout | South’s Banks to Open to a Bank Staff Strike?

Cyprus Bailout | South’s Banks to Open to a Bank Staff Strike?

Whilst a section of the south’s population are protesting for the banks to open another section, the bank staff, are protesting to keep them closed.  Cyprus Union of Bank Employees leader Loizos Hadjicostis threatened strike action if the government does not rethink the restructuring of the banking industry which would lead to many of his members losing their jobs.

With the Laiki Bank alone employing 8000 staff in the bloated industry it would be impossible for there not to be a mass lay off of staff. If the union were to go ahead with their strike threat it would be impossible to imagine the reaction of bank customers if they discovered the long awaited bank opening was to be thwarted by employees of the institution at the centre of the crisis.

Around the world it is hoped that other banks are learning a lesson from Cyprus and there are calls to UK banks, for example, to increase the amount of capital they would have to raise in order to protect themselves against future losses. This is a bit like the gas industry not keeping enough gas to cope with an unexpected cold period. In the case of the banks this could mean, among other measures, calling in debts and restricting lending at a time when there is a move to reignite the property industry which would require an expansion of mortgages.

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