Israel's 11,000 doctors at government and Clalit Health Services Ltd. -run hospitals, and at the Hadassah Medical Center will receive pay rises of 23.5-24.2%. This is the decision published today by the three-man arbitration panel commissioned eight years ago by the Ministry of Finance and doctors to study the issue. An additional 3,000 doctors employed by the other three health funds, Meuhedet, Leumit Health Fund, and Maccabi Health Services Ltd., were not included in the arbitration agreement, although they are expected to call on their employers to fall in line with their counterparts.
There was drama this afternoon moments before the ruling was to be read, delaying the proceedings. It was finally agreed that the pay rise would be given in five installments. The final payment will be postponed from mid 2010 to January 1, 2011 amid pressure by the Ministry of Finance because of the financial crisis.
Following the prolonged strike in 2000, the Ministry of Finance and Clalit management agreed that for the first time in Israel's history, doctors' salaries would be set by an authorized, independent arbitration panel. The doctors agreed at the time to a 10-year moratorium on industrial action, and the decision was seen as a step forward and a gateway to reform in the public healthcare system. However, over the past year the fear grew at both the Ministry of Finance and among Clalit management that the arbitrators would come down on the side of the doctors, and that the pay rises they were about to recommend would be exceptionally high. Ministry of Finance officials tried in recent days to bring about a last minute change in the ruling, on the grounds that the economic crisis now gripping the economy should be taken into account, and the fact that the ministry was set to put into effect a costly aid package.
Published by Globes [online], Israel business news - www.globes-online.com - on November 26, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008