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Financial Participation

While employee share ownership and profit-sharing are not widespread in Cyprus the organisation of workers in cooperatives is significant.

According to the fifth European Working Conditions Survey (EWCS)1 the penetration rate of profit-sharing models in Cyprus is around 3.2% and of employee share ownership models around 0.9%. These low values are due especially to the fact that there are only a few large companies in Cyprus (in 2011 there were an estimate 76 companies with more than 250 employees) and there is a high proportion of self-employed (in 2010 17% of employment).2

According to the European Company Survey, covering more than 27,000 HR managers in Europe, in 2009, only 6% of private companies with more than 10 employees offer profit-sharing. By European comparison this is below average (the average in the 30 countries investigated is 14%). The penetration rate of employee share ownership models, according to the Survey, is 4%.3

Cooperatives have a long tradition in Cyprus. Between the founding of the first Cypriot cooperatives at the beginning of the twentieth century and 1974 (the year of the Cypriot-Turkish conflict) the cooperative movement registered substantial growth. This trend has subsequently slackened. The nine most important national cooperatives in Cyprus have over 200,000 members altogether.4 Most cooperatives employ fewer than 10 people.

 

 

According to the Cranet study of 2011 in Cyprus distribution of employee share ownership models is below average (in companies of 100 employees or more).5 In particular employee shareholding is not widespread in Cyprus. Only 10% of the companies surveyed said that shareholding models exist in their firm; the average for all countries investigated is 23%. For the purpose of the study HR managers in 29 countries were questioned about the dissemination of financial participation models in their companies.

Wilke, Maack and Partner (2014) Country reports on Financial Participation in Europe. Prepared for www.worker-participation.eu. Reports first published in 2007 and fully updated in 2014.