The labor dispute at First International Bank of Israel (TASE: FTIN1;FTIN5) is over. After almost two weeks of confrontations and sanctions, the bank’s management reached an agreement with the workers committee, chaired by Hanoch Livneh. The bank notified the Tel Aviv Stock Exchange (TASE) that the agreement would cost an estimated NIS 50 million.
Under the agreement, the collective labor agreement will be extended by five years, and salaries will be linked to those at Bank Leumi (TASE: LUMI). First International Bank’s clerks and authorized signatories will receive NIS 20 million in January 2007 (NIS 10 million for each workers committee), and a similar amount in March 2007, when the bank sells its provident funds.
In exchange, the bank’s employees promised industrial quiet for two years, and will undertake no labor sanctions, except in the event of a general strike or extraordinary incident at the bank. The clerks and authorized signatories also agreed to forego all previous claims.
The bank’s management won a victory, with the extension of temporary employment from 18 months to two years, with an option to extend for two more years, for a total of four years, the same condition that prevails at Bank Leumi.
Published by Globes [online], Israel business news - www.globes.co.il - on December 7, 2006
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