Israel Discount Bank (TASE: DSCT) is close to signing a wage agreement for 2016-18. Sources inform "Globes" that this morning, the workers' committee was to meet with the bank's management for the signing of this agreement. As "Globes" reported earlier this month, this is 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; this is aimed at tackling significant salary gaps in the bank.
As part of the agreement, the staff will receive a NIS 1,500 raise, while managers will receive a slighter higher raise - NIS 1,750. In addition, employees will receive a NIS 20,000 grant which will be considered a wage rise for 2014-5, years in which the bank had no wage agreement and only a symbolic raise was given as an advance payment
Such a salary hike, unlike the accepted mechanism in regular salary agreements, provide employees with a lower salary with a significant raise. For example, a NIS 1,500 raise constitutes an increment of over 20% for an employee with a monthly salary of NIS 7,000, while a NIS 1,750 raise constitutes an increment of less than 3% for an employee earning NIS 60,000.
Another substantial change relates to the bank's labor charter. As part of the agreement, the bank will cancel reshuffle raises. This raise, 5% in average, has been given to an employee for being moved to another position, even if this was not a promotion. Such a large pay raise has led the management to limit reshuffling managers, as it resulted in significant expenses. For the cancellation of this article, managers will receive a one-time wage rise estimated at about 2.5%-3%.
In addition, the agreement regards 57 special needs workers, employed in the bank on a temporary basis as part of a community support project. As part of the agreement, these employees will be integrated as regular Israel Discount Bank (TASE: DSCT) employees.
Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2016
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