Public sector wage agreement to be signed

The deal was reached nine months ago.

Unless a last-minute surprise occurs, the public sector wage agreement will be signed nine months after a pay raise was agreed upon. 700,000 public sector employees will receive a 5% pay raise spread over three years: 1.5% retroactive to January 2008; 1.5% in December 2008; and 2% in December 2009.

As "Globes" first reported, for the first time the pensions of public sector pensioners will be detached from the average public sector salary and wage agreements. Instead, pensions will be linked to the Consumer Price Index (CPI), a measure that is considered a victory for the Ministry of Finance, although the Histadrut (General Federation of Labor in Israel) claims otherwise.

The prolonged delay in signing of the wage agreement was mainly due to the opposition of the Government Companies Authority to apply the agreement to employees at government companies, including Israel Electric Corporation (IEC). The Histadrut considered this to be a power play by the new Government Companies Authority director general Udi Nissan. He lost the argument, and employees at government companies will also get the pay raise.

Published by Globes [online], Israel business news - www.globes-online.com - on April 16, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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