A collective agreement for recovery of the Israel Postal Company Ltd. was signed today. The agreement will make it possible to carry out a recovery program initiated by the Ministry of Finance and the Postal Company management. The agreement encountered difficulties over the past two weeks, making its implementation doubtful, despite the agreements reached last October. Representatives of the holders of the Postal Company bonds petitioned the court to appoint Eyal Gabbai as trustee for a recovery arrangement because of their concern that it would not be carried out.
The agreement includes a number of key measures during a four-year recovery period, including providing better service to the public by keeping postal branches open until 8 PM three days a week, creating incentive and remuneration mechanisms for postmen designed to increase the volume of registered mail deliveries, and development of additional growth engines involving credit, finance, and insurance. The agreement will also facilitate the introduction of new services at branches and the operation of mail delivery centers.
The agreement provides maximum flexibility in moving employees, elimination of 1,200 jobs, and increasing the number of personal contracts in order to enable management to manage the company effectively.
The Postal Company has suffered from cash flow and other problems for several years that have affected its regular business capability, and have rendered the providing of efficient and appropriate service to the public impossible. This agreement stresses improving service to the public by extending business hours at the postal branches and streamlining regular mail processes.
Histadrut (General Federation of Labor in Israel) chairman Avi Nissenkorn welcomed the signing of the agreement, saying, "Today, the Israel Postal Company was saved from collapse, and is embarking on a new path. The agreement signed, led by the Histadrut, proves that real reform can be accomplished only through consent and dialogue between the Histradrut, the workers, and management."
Postal Company CEO Haim Elmoznino said, "I welcome the signing of the collective agreement, which will make it possible to implement the recovery plan for the company that we have concentrated on for the past two years. Carrying out the plan is an important milestone for the Postal Company, because it allows the company to adapt itself to the 21st century, substantially improve its service to the public, and put itself back on the road to growth."
Postal Company chairman of the board of directors Hezi Zaieg said, "Wise handling of the negotiations by both management and the workers has produced one of the best agreements signed in Israel over the past decade. On the basis of a solid foundation, the company is charting a new path, with new challenges, that ensures economic security for thousands of families of the workers in the company and better service for all the country's citizens."
Published by Globes [online], Israel business news - www.globes-online.com - on January 21, 2015
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