The Knesset Labor, Welfare, and Health Committee, chaired by MK Haim Katz (Likud), yesterday approved for its second and third plenum readings the last of the 13 new labor laws formulated as part of the economic package deal. The new law stipulates that if a sector has an industry-wide collective agreement that provides for a higher minimum wage than the national minimum wage, the industry minimum wage will be the determining minimum wage. Any violation of the industry minimum wage will incur all the relevant penalties, including criminal penalties.
For example, a collective labor agreement was signed this year for the security guards industry, which sets an industry minimum wage that is 2.5% above the national minimum wage. An employer who does not pay the industry minimum wage, even if it is above the national minimum wage, after the new comes into effect will be considered as breaking the Minimum Wage Law.
The bill has many opponents, including the Federation of Israeli Chambers of Commerce president Uriel Lynn. He says that it is sufficient to enforce criminal penalties for paying less than the minimum wage, and that there is no need to put a further burden on employers.
Published by Globes [online], Israel business news - www.globes-online.com - on July 23, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009