Histadrut (General Federation of Labor in Israel) and Ministry of Finance today signed a public sector framework pay agreement until the end of 2027. This is a particularly large agreement, the principles of which were agreed several months ago. The agreement includes a one-time NIS 6,000 grant in the March salary in preparation for Passover, a NIS 400 payment in July, which will be paid in August, and an additional NIS 100 in October 2024 - this will count as a 5% salary increase. Then every December, public sector employees will receive a 2% salary hike, reaching an overall 11% by the end of 2027.
Histadrut chairman Arnon Bar-David said, "The shekel amounts give much more to workers at the lower levels. We are also shortening the work week from 42 hours to 41 hours in October, and to 40 hours in September 2024. This brings Israel into the family of nations in Western countries. In Europe they work much fewer hours. One of the great achievements of this agreement is that we were able to create a balance between home and work. The Israeli worker works too hard. We spent many years on this change."
One of the most important points in the agreement is a "problem solving box" worth a 3% salary increase. It is intended to solve problems and disputes during the period of the agreement, without the need to go on strike. In addition, says Bar-David, it is intended for "sectors that need to be strengthened: administrative and economic workers in hospitals, social workers, psychologists, the courts and the list is long. This model started during Covid, and has proven itself. Solutions in real time during the period of the agreement." Ministry of Finance head of public sector salaries Efi Malkin said, "The agreement is very professional, very much to the point, and received a agreement from all economic organizations. I hope that the things that Anon talked about in 'the box' will change the world of labor relations."
The Histadrut has undertaken not to strike over the introduction of new technologies, and Bar-David said, "We are entering with the workers a period that will allow the economy to progress, the public sector to develop, improved technologies and improved service to the citizen."
"This was particularly evident in the recent passport marathon, in which Bar-David said, "I asked civil servants to enter this operation and produce passports for every citizen in the State of Israel. Work was done here in cooperation with the Ministry of the Interior, and in cooperation between the workers and the management. It is possible to produce things, and this is how I want to see the public sector: digital, advanced, without lines and without bureaucracy. We will do our best."
Published by Globes, Israel business news - en.globes.co.il - on July 17, 2023.
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