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Details of the agreement of the Ministry of Finance and the «Histadrut»

Cancellation of the General strike at the last moment – a tradition for several years. Since 2011, when was the last time Israel held a General strike, «the Histadrut» declares its intention to use its most powerful weapon several times a year (only this year, these ads were four), but in the end the parties agreed without strikes.

The unions demanded increase of salaries of all employees public sector by 11% without increasing labor efficiency or administrative flexibility.

The Finance Ministry was willing to raise salaries by 7% differential (workers with low wages to give more to workers with higher wages – less), causing that acceptance of the «Histadrut» to increase administrative flexibility.

In the end, the parties announced about increase of salaries of 7,5% in average for three years. With half of the increase will be differential, and the other half the same.

In addition, civil servants will receive two doses 2 thousands of NIS premiums. Parents of young children will receive an additional day of vacation or the opportunity to go home an hour earlier in the last two weeks of August, when there are kindergartens and summer camps.

Students in the civil service, working on an hourly job, will get 1 shekel higher than the minimum hourly wages, additional day of vacation choice during the holidays and extra day off during sessions.

Several groups of workers, including workers paramedical workers and the second generation in local authorities will receive an additional allowance of 2% to the salary.

The total cost of the agreement up to December 2017 will amount to 7.5 billion shekels.

Finance Minister Moshe Kahlon, and Chairman of the «Histadrut» AVI Nissenkorn announced a «breakthrough agreement, significantly improving the position of workers with low wages».

The new agreement differs from the previous one. Before the increased salaries to all employees at the same percentage, which meant a major boost to high salaries and little or no contribution to small. The new agreement provides for the increase of all salaries as a percentage of only 3.5%. The remaining increase is the same for all in absolute terms. As a result, the salary of an employee receiving 5.500 ILS will grow in average by 12% (about 650 shekels), and the salary of the employee who receive NIS 30,000 – 5.3 percent (about 1.5 thousand shekels). In percents poor worker would end up significantly more wealthy, but in shekels, the gap is still not in his favor.

In addition, a differential allowance to salary will be calculated within each Agency separately (in accordance with the average salary in each Department). This means that the gap between the wages of nurses, teachers or social workers compared to the wages of employees of the Department of airports or the electric company still will increase significantly, since in average teachers and nurses earn less than half the size of workers of the «Israel Power».

Moreover, according to The Marker, in a solemn official press releases the Ministry of Finance and the «Histadrut» forgot to mention that the ports had agreed with the «Histadrut» that they do not participate in this agreement, and the negotiations with them the government will have to conduct separately.

With regard to administrative flexibility, «the Histadrut» for the first time agreed to the tenders for searching candidates to engage the vacant positions published for all employees of the public sector, and not only for the workers of the structure in which the bet is freed. This will significantly increase horizontal mobility between various departments.

At the same time, recognizing the need for the introduction in government agencies, new technologies aimed at improving the quality of service, the unions are not willing to abandon the strikes on this occasion with the requirement of compensation.

Also outside the Treaty has retained the requirement of the Ministry of Finance about increasing the period of prior employment with two to three years.

Details of the agreement of the Ministry of Finance and the «Histadrut» 24.12.2015

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