The threatened strike on Israel Railways has been cancelled. This is after intensive negotiations involving Histadrut (General Federation of Labor in Israel) chairman Ofer Eini, the Ministry of Transport, the Ministry of Finance, Israel Railways management, and Israel Railways chairman Ori Yogev, produced a formula for resolving the longstanding labor dispute with the rail workers over the participation of international railway equipment companies in Israel Railways maintenance works.
Under the agreement put together by the parties, two subsidiaries will be formed at Israel Railways, one for the company's real estate and the other for its cargo business, that will employ workers employed under the collective agreement, preserving their rights, while maintenance of some rolling stock will be outsourced, but not transferred to a separate subsidiary. In return, the Israel Railways workers committee gave an undertaking of industrial quiet on the railways for three and a half years, and all outstanding labor disputes were cancelled. Israel Railways management agreed not to carry out any layoffs at the company until 2030.
The workers will receive a 25% pay rise, to be implemented in accordance with progress with the reform, and a NIS 40,000 grant. It was also agreed that 140 ticket office workers currently employed by an external company will be brought under the collective agreement, and, as a confidence building measure, the suspensions and dismissals handed out to employees by the Israel Railways disciplinary committee this week will be rescinded, including the suspension of workers committee chairwoman Gila Edri. However, the workers concerned will have the disciplinary matters entered on their records, and will be bound to maintain good behavior and to refrain from any violence.
The cost of the benefits to the Israel Railways employees totals more than NIS 100 million annually.
Published by Globes [online], Israel business news - www.globes-online.com - on March 27, 2012
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