First International Bank of Israel (TASE: FTIN), managed by CEO Smadar Barber-Tsadik, today reached agreement with the bank's managers and authorized signatories committee on several matters. It was agreed that the bank would offer an early retirement plan for dozens of managers with enlarged severance pay of up to 170%, depending on seniority and subject to additional criteria to be determined in the plan.
At the same time, the bank will pay all of its authorized signatories a bonus averaging up to one month's salary. The amount of the bonus depends on the rate at which the employees retire. The bank said that these expenses would not have a major accounting influence on its results.
The parties also decided to suspend all proceedings taking place in the labor tribunal. Among other things, the bank will suspend its appeal of the labor tribunal's ruling obligating the bank's management to pay a bonus and the committee's lawsuit against bank on streamlining matters will also be suspended.
While the banks management has reached agreement with its managers' committee, labor disputes are still ongoing with the workers' committee of its Bank Otsar Hahayal subsidiary and the workers' committee of its MATAF - Computing and Financial Operation subsidiary, the group's technological arm. These disputes mostly concern the bank's planned streamlining measures.
Published by Globes [online], Israel business news - www.globes-online.com - on September 5, 2018
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