46% of Israeli firms cancel raises

Companies are cutting back on employee benefits as the economy slows down.

46% of industrial companies have cancelled employee pay hikes planned for 2009, and 40% of companies have cancelled bonuses, according to a new survey by the Manufacturers Association of Israel of 50 companies. The firms surveyed ranged from small to large, and included all manufacturing sectors.

Manufacturers Association head of labor and human resources Avi Barak said, "The survey of dozens of factory personnel and human resources managers also showed that 48% of factories have suspended hiring for 2009."

69% of the factories have reduced overtime and 22% have cancelled shift work. 32% of factories are restricting fuel use by company vehicles, 18% have replaced company cars with cheaper models, and 8% have reduced the number of cars in an effort to cut costs.

34% of factories have reduced non-salary benefits, by cancelling end-of-year parties, company outings, and the like.

The Manufacturers Association is very pessimistic and says that the situation at factories' will deteriorate further and that the worst is still ahead.

Published by Globes [online], Israel business news - www.globes-online.com - on December 7, 2008

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

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