Bank Hapoalim (TASE: POLI) is drawing up a new streamlining plan, which will reportedly include the elimination of 500 positions. The plan will focus on the bank's headquarters.
The plan will reportedly include early retirement, the transfer of employees, and the firing of non-tenured employees, resulting in the elimination of hundreds of positions. Bank Hapoalim cut 650 positions in its previous streamlining plan 18 months ago, mostly at headquarters. Assuming 500 more positions are cut under the present plan, the bank will have reduced its workforce by over 1,000 employees -10% - within three years.
Bank Hapoalim has been emphasizing streamlining for four years, and has taken several steps to this end, including a new salary contract reached with the workers committee a year ago. The five-year contract includes a pay hike of less than 6%. For the sake of comparison, other banks raise salaries by 5% a year. The pay hikes are also progressive, with larger raises for lower paid employees. Bank executives also took a 5% pay cut.
Other banks are also streamlining, which will result in a loss of 3,000 bank jobs within three years. Bank Leumi (TASE: LUMI) is planning to termination of 150 contract workers at its operations and computer division, and there has been a labor dispute at Israel Discount Bank (TASE: DSCT) for nine months over management's determination not to continue its past policy of annual 5% pay hikes.
Published by Globes [online], Israel business news - www.globes-online.com - on January 15, 2014
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