Another voluntary retirement program with extra benefits for retirees has been agreed with the workers' committee at mobile phone operator Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL). The committee today notified the company employees of the agreement with Cellcom management. Under the agreement, workers leaving the company voluntarily will receive much larger retirement bonuses, including payments for incentives and being on-call, a bridging pension for those aged 58 or more, the best available professional counseling, a vehicle package for an acclimatization period, etc.
The current voluntary retirement program, the second at Cellcom, is not limited in the number of retirees, but it cannot include more than 150 employees. Employees wishing to retire will have to make their decision within a few weeks. Judging by the earlier plan, the plan will cost NIS 20 million.
The workers' committee announced, "After intensive negotiations, the parties have reached agreement. Under the plan, any worker with 30 months or more seniority can terminate his employment in the group, should he wish to do so, and benefit from a package of financial benefits consisting of particularly general retirement terms. For only three weeks starting from today, all company employees with the required seniority can submit to management their request for inclusion in the plan."
The benefits package for retiring employees includes extra-large bonuses (years of seniority, multiplied by monthly salary), in addition to compensation accumulated to their benefit in funds. For example, a workers with 15 years of seniority in the group will receive, in addition to the compensation to which he is entitled, a bonus amounting to 15 months salary (calculation the salary will also include both incentives and payment for on-call hours). Employees over 45 will receive one month's salary extra.
The voluntary retirement plan is also good news for workers over 58. Both men and women in this category will be entitled to a bridging pension, or alternatively, at their choice, a one-time discounted sum, and will also receive pension payments up to age 67 on the basis of their last salary.
Another benefit for voluntary retirees is free pension advice and consultation. Under the retirement plan, employees with a company car will be entitled to a free car and mobile phone for three more months. All retirees will be entitled to subsidized health insurance and personal advice in finding employment in a special project sponsored by the workers' committee.
Cellcom workers committee chairwoman Maya Yaniv said, "Even in difficult times for the cellular sector, especially at Cellcom, we managed to obtain marvelous terms for the workers, beyond what is customary in the market. The necessity for a strong worker's committee has again been proven, The proposed terms will enable voluntary retirees to start a new chapter in their lives with strong and reliable financial backing."
Published by Globes [online], Israel business news - www.globes-online.com - on May 22, 2016
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