Mobile carrier Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) and its workers' committee today announced the second voluntary retirement plan at the company within a year. 200 employees retired in the previous plan, and it is estimated that the number of retirees this year will be even greater.
The agreement at Cellcom creates a serious problem for other workers' committees in the cellular market, because no committee will be willing to compromise on less than what was agreed at Cellcom, and some workers at the cellular companies are already demanding the same conditions achieved by the Cellcom worker's committee.
The workers' committee announcement said that those seeking to retire would benefit from unprecedented terms, including, among other things, especially high retirement bonuses containing payments for incentives and being on-call, early pension bridging for those aged 58 or more, professionally tax consultation, a car package for an adjustment period, etc.
Cellcom workers committee chairwoman Maya Yaniv said, "A strong committee is one that sets the agenda. Following an impressive collective work agreement and innumerable achievements all along the way, we achieved this time for the working man a real possibility of choosing to realize a dream and get in mid-life a giant opportunity for a change with strong economic backing."
Under the plan, every employee with 30 months or more of seniority can, if he wishes, terminate his work at the group with a substantial economic parachute in the form of especially generous retirement terms. The plan includes an attractive basket of benefits and a limited number of places. Starting now and during an entire month, all company employees meeting the seniority criterion can submit a request to management for inclusion in the plan.
The retiring employees will benefit from an extensive package of benefits including enlarged bonuses (the number of years of seniority, multiplied by their salary), in addition to the compensation accrued to their benefit in funds. The determining salary for calculating the bonus includes both incentives and payment for being on-call. Workers aged 45 or more will receive an extra month's salary. Under the retirement plan, workers with a company car will be entitled to a car and mobile phone for three extra months (they will be exempt from taxes on the vehicle use value during this period). All the retirees will be entitled to personal help in finding a job as part of the special project by the company.
The voluntary retirement plan is also designed for workers aged 58 or more. Both women and men in this category will be entitled to a bridging pension, or, if they choose, a one-time capitalized allowance and continued pension deductions on the basis of their most recent salary until age 67. They will also receive a prestigious benefit in the form of free professional pension consultation for retirees.
Published by Globes [online], Israel business news - www.globes-online.com - on April 19, 2015
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