The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) management today signed a collective agreement with the company's 2,700 employees. The agreement, which is valid from January 1, 2016 until December 31, 2018, includes a 12% pay raise for the company's employees, plus an annual bonus amounting to up to 2.7 months' salary per employee. The bonus will depend on the company's profits, under the assumption that profits will reach at least 70% of the target.
The agreement also stipulates that soon after the agreement is signed, employees will be paid bonuses for 2014 and 2015. When the future sale of Phoenix is completed, the workers will receive an additional bonus. The agreement further states that the minimum wage in the company will be raised to NIS 5,300, retroactive to March 2016, and that new employees will be given tenure within three years.
The agreement establishes various mechanisms giving consideration to the workers' committee and the Histadrut (General Federation of Labor in Israel) in all matters pertaining to termination of work by company employees.
Phoenix workers' committee chairman Orna Biton said, "At the end of a long and event-filled period, I am glad that we have achieved the first collective agreement at the company, which is truly good news for Phoenix's employees and future. I thank all the company employees for their support and solidarity, and especially the members of the workers' committee for their determination and persistence. I thank company management for being enlightened enough to sign an agreement that will ensure a better future for the workers, labor relations, and the company itself."
Published by Globes [online], Israel business news - www.globes-online.com - on July 5, 2016
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