Israel Discount Bank (TASE: DSCT) is expected to expand its early retirement program by more than 100 workers. This week, the bank’s board of directors is expected to decide whether or not to approve the expansion of the early retirement program, which would force the bank to pay out NIS 120-150 million to finance the program. The bank, managed by Lilach Asher-Topilsky, announced a new strategic plan in August, a central part of which was the early retirement of 250 workers, at a cost of more than NIS 300 million.
The bank planned to complete the early retirement plan within a year, however, the quick response to the plan made it possible for the program to be completed by the end of 2015, and for 250 workers to retire.
In parallel to the fulfillment of the quota, Benefit, which was hired by the bank to deal with the employees’ retirement terms, reached agreements with more workers who expressed interest in the program. The bank informed the workers three weeks ago that the quota had been fulfilled, but that Benefit would meet with workers who had expressed interest in the program. Since the announcement was made, demand has risen from workers seeking to schedule meetings with Benefit, and more than 100 meetings were ultimately scheduled. At present, as the bank sees that a large number of workers are serious about their desire to join the program, it will bring the matter of the expansion of the program to more than 250 workers to vote by the board of directors.
This is a surprising development, as in the bank’s previous early retirement program, which took place three years ago, the company had great difficulty fulfilling the minimum quota that it had set for itself. It appears that the workers understand that the bank is expected to undergo quite a few changes, including a 10% reduction in the workforce, or 1,000 workers (most of whom will retire naturally), and they therefore prefer to retire.
In addition to these programs, the bank also has a fund for retirement under extenuating circumstances, which totals NIS 50 million, such that, during those two years, it will be possible to use the fund to extend early retirement to a few dozen more workers.
Published by Globes [online], Israel business news - www.globes-online.com - on December 15, 2014
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