Leumi's Management and Workers' Committee Reach New Labor Agreement
January 25, 2015
The management of Bank Leumi and the Leumi Workers' Committee have reached a new collective labor contract for the years 2015 to 2018.
The agreement was reached after intensive negotiations which recently took place between management representatives, led by Head of Leumi's Human Resources Division, Dany Cohen, and employee representatives, headed by Chairperson of Leumi's Workers' Committee, Miri Rubino.
The outline of the collective agreement was reached on the basis of the previous collective agreement's guidelines, which expired December 31, 2014, while introducing a number of key changes, emphasizing the protection of veteran workers' rights, and improving employment conditions for both younger employees and those at a relatively low salary level.
Highlights of the agreement:
- The average rate of annual salary increase, for all employees, will be 4% per year in the years 2015-2016, and 3.5% per year in the years 2017-2018.
- Provisions by the employer (the Bank) for younger employees with unfunded pensions will be raised from 5% to 7.5% – a 50% increase.
- The salary of employees currently earning minimum wage will be raised immediately by 15% to NIS 5,000 per month. By doing so, the Bank is anticipating the government's decision to increase the minimum wage in Israel by two years.
- The Bank will increase the pace of direct employment of contract workers. The outline and scope of their employment is yet to be determined.
- For the first time, a fundamental decision was reached to compensate employees for accumulating sick leave, which will be paid upon their retirement.
- Employees will receive a signing bonus equivalent to one month’s salary.
Bank Leumi CEO, Rakefet Russak-Aminoach: "I welcome the successful finalization of the agreement. It's no secret that the initial gaps were wide, but I'm glad that we proved once again that in a direct and open dialogue, when both sides behave responsibly and seriously, achievements can be reached for both the employees and the Bank".
Chairperson of the Leumi Workers' Committee, Miri Rubino: "This agreement is good news for the Bank's employees, with an emphasis on younger employees and those earning minimum wage. I'm glad that the management agreed to most of our demands for changes in the current agreement, out of recognition that the Bank's strength is its employees. As a responsible Workers' Committee, we have set milestones for the preservation of pension rights and for non-dismissal of employees. At the same time, we accepted some compromise regarding wage increase. At this time, we all have to work together for the continued prosperity of the Bank. I want to thank the Bank's management and my colleagues in the Workers' Committee, for their conduct during these intensive negotiations, and for their personal investment in the benefit of all employees".