This the fourth year in which "Globes" has surveyed the salaries of the bank workers, the employee group traditionally found at the top end of the salary league. From analysis of the banks' financial statements it emerges that the average monthly salary cost of the 49 thousand workers in the banking system in 2009 was NIS 25,800, compared with NIS 26,100 in 2008 and NIS 26,700 in the peak year of 2007. (Early retirement payments and privatization grants have been stripped out of the figures.) Salary costs have reverted to their 2005 level.
Nevertheless, there is no need to shed a tear. Since 2003, the salary cost of bank workers has risen 11%. The reasons for the rise are the jump in the banks' profits in earlier years that led to the distribution of high bonuses in the years 2005-2007.
In 2009 there was a change of leader. Since 2003, the highest monthly salary cost among the banks had been at Bank Hapoalim (LSE: BKHD; TASE: POLI). In 2009, Israel Discount Bank (TASE: DSCT) took first place. Ricki Bachar, who heads the bank's militant workers committee, can take pride in his work. Discount Bank's financial statements show that the average annual salary cost was NIS 332,000, which is NIS 27,700 monthly. This is not enough for Bachar, who is currently negotiating with the bank's management for a salary rise of 10% for 2009 and 2010.
The figures relate only to the bank itself, and not to other companies in the Discount group or to Discount Bank of New York.
Bank Hapoalim is in second place, with an average monthly salary cost of NIS 25,800. Third is Bank Leumi (TASE: LUMI), where the average monthly salary cost is NIS 25,600. Bank Hapoalim workers always used to be way ahead of their colleagues at Leumi, but the Leumi workers have narrowed the gap. The average bonus at Bank Leumi in 2009 was NIS 16,900.
In fourth place come the workers at Union Bank of Israel (TASE: UNON), with an average salary cost of NIS 25,400. After them are the workers at First International Bank of Israel (TASE: FTIN1;FTIN5), with an average monthly salary cost of NIS 24,750, 1.7% less than in 2008. They are followed by the workers at Mizrahi Tefahot Bank (TASE:MZTF), with an average monthly salary cost of NIS 24,166, and at Bank of Jerusalem, with NIS 23,900.
Published by Globes [online], Israel business news - www.globes-online.com - on March 31, 2010
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