Sources inform "Globes" that Israel Discount Bank (TASE: DSCT) is close to signing an historic wage agreement, in which salary hikes will constitute a flat, across-the-board sum for all employees, rather than a percent of the salary, as customary in the banking sector so far. This raise is estimated at NIS 1,500 over three years (2016-2018). A mechanism in which salaries are raised by a fixed sum, rather than in proportion (percentage) to the salary, will be beneficial mainly for employees with lower salaries, at the expense of higher-paid employees. Discount is considered to be the bank with some of the highest salary gaps, mainly due to the difference in conditions between first and second generation employees.
The agreement also suggests that other than the wage hike, employees will also receive a NIS 20,000 grant, which will be considered to be a wage raise for 2014-5, years in which the bank had no wage agreement and only a symbolic raise was given as an advance payment.
Discount's management, led by CEO Lilach Asher-Topilsky, is close to reaching an agreement with the staff's committee, headed by Rafi Kazalkopi, while substantial disagreements still persist with the managers' committee, mainly regarding the labor charter. These days, the parties are carrying out marathon negotiations, in an attempt to resolve all disputes.
Kazalkopi, a second generation employee, was elected committee chairman several months ago. He replaced Menny Grinstein, the former right hand of the committee's legendary chairman Ricky Bechar, who was a first generation employee. During the elections, Kazlakopi promised to pursue improved conditions for second generation employees and to reduce Discount's pay gaps. This agreement indeed begins to tackle wage gaps. For example, a NIS 1,500 raise constitutes an increment of over 20% for an employee with a monthly salary of NIS 7,000, but only a 2.5% increment for an employee earning NIS 60,000.
Published by Globes [online], Israel business news - www.globes-online.com - on November 7, 2016
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