Treasury and Histadrut sign civil service pay agreement

Histadrut (General Federation of Labor in Israel) chairman Avi Nissenkorn and Minister of Finance Moshe Kahlon signed a public sector pay agreement yesterday. The agreement, termed a framework agreement, comes at the end of a long period of discussions between the Histadrut and the state and other civil service employers. The agreement, which will apply for the next five years, stipulates a 7.5% pay rise and a NIS 2,000 bonus (half of which was distributed to most of the workers in January this year).

Nissenkorn said, "We can now say our work is done. This is an important agreement that corrects historical distortions and is genuine good news for many groups of workers. The fact that this agreement succeeds, in practical terms, in strengthening the lowest paid employees in the public sector makes it an important tool for narrowing social gaps."

Ministry of Finance Commissioner of Wages Kobi Amsalem welcomed the agreement, and called it "one of the most complex agreements, with benefits for the public sector and its workers." He said that "the agreement will lead to a narrowing of gaps between the weak and the strong and includes improvements that will make the public sector more efficient."

The Ministry of Finance and the Histadrut stressed the fact that, under the agreement, wage rises and other improvements in conditions are for the first time awarded specifically to low-paid groups of workers, placing the emphasis on narrowing gaps. The Histadrut also pointed out that the current agreement has been signed in a zero and even negative inflation environment, so that the pay rises that it awards do not represent compensation for pay erosion but substantial real increases in pay for the workers.

In specific sectors where there are pay distortions requiring correction, the agreement stipulates pay rises larger than 7.5%. For example, ancillary health workers such as pharmacists, radiologists, microbiologists and psychologists are awarded a double pay rise of 15%. Thanks to the fact that half the rise will be paid as a rise in shekel terms, rather than as a percentage, those on the lowest pay scales will receive an average pay rise of more than 19%.

The agreement contains measures to reduce the phenomenon of part-time work. It also contains a commitment that within 60 days an application will be filed for an extension order making the agreement apply to about 6,000 social workers employed through non-profit organizations and private companies who provide services to government ministries and local authorities, bringing their pay and conditions in line with those of social workers in direct government employment.

Also, for the first time, the agreement regularizes the employment security of secretaries to ministers and directors general in government ministries. These are about 200 civil servants employed in positions of trust who are summarily dismissed nearly every time the minister or director general changes. The agreement states that secretaries of six-years standing or who have worked for at least two ministers or directors general will be entitled to tenure.

Published by Globes [online], Israel business news - www.globes-online.com - on April 19, 2016

Treasury and Histadrut sign civil service pay agreement

The five-year agreement for the first time provides for differential pay rises in favor of very low-paid workers.