Israel Discount Bank (TASE: DSCT) workers committee chairman Riki Bachar is carrying out his threat to launch labor sanctions. The labor dispute is over the stymied negotiations on a new salary contract.
On Sunday, the first working day after the labor dispute comes into effect, employees at 20 Discount Bank branches in the Tel Aviv, Haifa, and northern districts will go on strike. The branches will not be closed. Discount Bank's management said in response, "The branches will be open and operated by temporary employees and management staff."
Discount Bank's salary contract expired in April 2009. Bachar is demanding an annual 5% pay hike and the restoration of five vacation days that the employees agreed to forego in early 2009. Management, led by CEO Giora Ofer, is offering a 2.5% pay raise.
Bachar said, "We presented management a clear position. Just as we agreed in the past to forego salaries and other benefits when it was necessary, management should recognize its obligation to compensate the employees in a year with clear profits.
"I doubt that the bank's management would be so forgiving of a customer who owes it money, if the debt was not repaid after a year of delays. A board of directors that does not allow management to reach a salary agreement in a year in which there are clear profits has no moral right to ask employees to make any contribution during the global economic crisis."
Published by Globes [online], Israel business news - www.globes-online.com - on January 14, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010