Histadrut and Pelephone agree 400 layoffs

Pelephone CEO Ran Guron  photo: Shlomi Yosef
Pelephone CEO Ran Guron photo: Shlomi Yosef

The layoffs will include early retirement packages for tenured workers and Pelephone employees will receive a 7% pay rise, and a 1% annual bonus.

Histadrut (General Federation of Labor in Israel) chairman Arnon Bar-David and Pelephone CEO Ran Guron today signed a new collective labor agreement for the company, following over a year of tough negotiations.

The agreement signed by the parties extends the 2017 collective labor agreement until July 2022 and adds to it, while regularizing the organizational changes resulting from cooperation between Bezeq's subsidiaries: Pelephone, Bezeq International, and Yes.

The parties agreed on the extent of streamlining at the company through the period of the agreement. Employees will have the option of voluntary retirement with enlarged benefits among the best ever given in the market, including a 250% retirement bonus and a basket of other benefits.

The agreement states that the company can give 210 tenured employees voluntary retirement, while involuntary layoffs will not exceed 90 employees under a mechanism set forth in the agreement if the retirement target is not met. In addition, 190 jobs of non tenures employees will be cut and no additional workers will be hired.

The main points of the agreement are a 7% pay rise in 2020-2022, a 1% annual bonus in 2021-2022 for workers with over 1.5 years of seniority, and a NIS 20 million signing bonus to be distributed to workers next January. The mechanism for distributing bonuses to workers has been upgraded, subject to meeting the company's targets each year.

It was also agreed that the company would allocate NIS 4,375 for each worker, plus NIS 3 million more, for welfare activities. A scholarship fund will be provided for workers' academic studies, a new benefits website will be opened for workers with a NIS 5.6 million budget, and the company's contribution to meals for workers will be increased from NIS 10 to NIS 31 daily on company sites on which there is no dining room.

Published by Globes, Israel business news - en.globes.co.il - on November 13, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Pelephone CEO Ran Guron  photo: Shlomi Yosef
Pelephone CEO Ran Guron photo: Shlomi Yosef
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018