Israel Electric Corporation’s (IEC) board of directors today deferred approving a revised 7.5% pay rise for all senior and junior employees. “Globes” revealed the revised pay raise yesterday.
Some directors strongly criticized the pay raise, on the grounds that IEC is financial trouble. The deferral came as a surprise, since it was believed the board would approval the compromise pay raise prepared by IEC’s management.
The directors said, “The revelation of the pay raise and the resulting public protest unquestionably led the board to avoid rushing to approve the agreement in its present format.” The board asked IEC’s management to provide additional details before approving the agreement. The board also wants Ministry of Finance director of wages Yuval Rachlevsky to explain the wages policy underlying his approval of the pay raise.
IEC chairman Eli Landau said, “In times like these, we should discuss such a serious issue only after the Ministry of Finance’s position is made absolutely clear, and only after we receive additional figures from the company’s management.”
Government Companies Authority director Eyal Gabbai said, “The board did excellent work today. The board should consider the good of the company beyond the government’s wage policy, and it’s a good thing that the board is holding a thorough discussion on the subject.”
Published by Globes [online] - www.globes.co.il - on February 20, 2003