Teva signs agreement with Kfar Saba employees

Teva employees Photo: Teva Workers Committee

Employees will receive a 2.2% pay increase and a bonus for 2018.

The Histadrut (General Federation of Labor in Israel), management of Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) in Kfar Saba, and representatives of the workers' committee there today signed a new collective labor agreement on employment and salary terms for the plant's 1,200 employees. The agreement is valid until the end of the year.

Teva's plant in Kfar Saba manufactures a number of drugs, the best known of which is Copaxone, the company's flagship drug, on which the patent has expired. The Histadrut signed a collective agreement a week ago ensuring the rights of workers at Teva's Migada plant in Kiryat Shmona, following the sale of that plant to FIMI Fund.

The agreement signed today extends the earlier collective labor agreement at the Kfar Saba plant until the end of 2019, including all of the workers' rights and the terms of their employment. The agreement also states that all of the workers will receive a uniform 2.2% pay rise starting with payment of their March salaries at the beginning April. They will also receive a bonus for 2018 at the beginning of April.

The agreement also includes payment for being on-call and special calls to work. It was also promised that the welfare budget for workers' activities would remain as it was before the agreement was signed.

Histadrut chairperson Avi Nissenkorn said, "I praise Teva's workers, the members of the workers' committee, and all those involved in the negotiations from the professional union and the district for signing an agreement that will preserve the workers' rights, while strengthening Teva and aiding its recovery."

Workers' committee chairperson Eliran Kozlik said, "I am glad that we have reaching understandings and solved the dispute without resorting to sanctions. We have again shown that dialogue can overcome differences. I now call on everyone, managers and workers, to combine forces and work together to meet the targets before us, so that we can move the Kfar Saba site forward to a better future."

Teva said in response to the signing of the collective agreement in Kfar Saba, "We welcome the agreements reached with the Histadrut and the representatives of the workers in Kfar Saba at the end of prolonged intensive negotiations.

"The parties acted jointly to bridge the gaps and draw up a fair and honorable agreement for the benefit of both the workers and the plant. At the same time, the agreement does not ignore difficult business circumstances that Teva still faces.

"We emphasize that the collective agreement is nothing other than a tool for achieving the common purpose of the site's managers and workers - making sure that the Kfar Saba site will be efficient, competitive, and with a sustainable horizon in the challenging and dynamic environment."

Published by Globes, Israel business news - en.globes.co.il - on February 10, 2019

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Teva employees Photo: Teva Workers Committee
Teva employees Photo: Teva Workers Committee
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