Prime Minister Ehud Olmert has intervened in the pay dispute at the Bank of Israel, just one day before the appointment of a new full-time finance minister. Olmert has backed the Governor of the Bank of Israel Prof. Stanley Fischer in his disagreement with Ministry of Finance director of wages Eli Cohen on salaries for new employees at the central bank.
Olmert, in his final decision as acting finance minister, ruled that 68 of the Bank of Israel's new employees will earn around NIS 32,000 a month, more than that of a ministry director general. Cohen was willing to approve increased salaries to just 32 employees, as a goodwill gesture, while Fischer wanted the extra pay to be given to 90 people.
Although Olmert's decision was contrary to his professional advice, Cohen does not intend to resign. As he sees it, the Bank of Israel has won a significant concession, and he hopes that the higher salaries will enable the central bank to hire employees with better qualifications and skills.
Olmert also ruled that the new employees will receive a bonus of NIS 750-1,000 a month for overtime. In return, the Bank of Israel accepted the salary scale for new employees drawn up by Cohen, which ranges from NIS 5,000 -32,000. This means that newly hired professionals such as economists, accountants and lawyers will earn just 10% less than their veteran counterparts. New administrative workers, on the other hand, will earn 30% less than those with tenure.
Published by Globes [online], Israel business news - www.globes.co.il - on July 2, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007