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Austerity Measures for Piraeus Bank Employees

The ambitious Greek bank, that offered  € 701 million in cash to buy two state run money lenders last summer, proceeds to a radical  changes of  its course. Piraeus Bank sends a percentage of its employees in Greece and abroad to a so called “sabbatical year.”

The bank sends employees on paid leave for 1 to 3 years in order to curb its wages budget. A circular sent to employees informs them that they can use long-term leave form 1 to 3 years and ensures them that after the leave the employees will return back to their positions.

The program targets initially the 5,049 Piraeus bank employees and 1,611 employees in Piraeus subsidiaries in Greece.

The program is scheduled to be extended also to the foreign subsidiaries of the bank, employing some 6,757 people.

Employees have  time until December 15 to decide whether they will use the program.

According to the management of  Piraeus bank, if  5% of the employees participate in the program, the Bank will achieve savings of € 20 million per year.

Depending on the duration of the leave (one, two or three years), an employee can receive 40 %, 45% or  50% of his annual gross salary.

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