Histadrut, defense ministry reach wage accord

“Defense ministry employees worked without a wage agreement in the past 11 years,” says ministry director-general Udi Shani.

By SHARON WROBEL
May 25, 2010 05:35
1 minute read.
HISTADRUT LABOR FEDERATION and Treasury officials

defense ministry salaries 311. (photo credit: Courtesy)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

The Finance Ministry and the Histadrut Labor Federation on Monday struck a new collective wage agreement for defense ministry employees, putting an end to disrupted labor relations announced at the beginning of the year and kickstarting planned efficiency measures.

“Defense ministry employees worked without a wage agreement in the past 11 years,” said Udi Shani, director-general at the Defense Ministry. “Workers will be full partners in the streamlining and efficiency measures advanced by the Defense Ministry.”

Be the first to know - Join our Facebook page.


Under the new four-year collective wage agreement – which was signed on Sunday between the Defense Ministry’s management, workers, Finance Ministry and Histadrut Labor Federation – Defense Ministry salaries of 2,200 workers will be raised by an average of 4.5 percent over two years. The salary increase will be progressive, which means that lower ranks in the ministry will get a higher raise of 8%, and the higher ranks will get a wage hike of 1.5% in three installments of which the last one will be in June 2011.

Defense Ministry salaries are among the highest in the public sector. According to the Finance Ministry’s annual report on civil service salaries, Defense Ministry employees earned an average gross monthly wage of NIS 18,300 in 2008, which is more than twice the national average.


In exchange for the salary hike, Defense Ministry employees will commit to cooperate with management in the ministry’s efficiency measures to merge its construction and development unit with the construction center of the Israel Defense Forces, and streamlining steps planned in the area of procurement. In addition, 270 senior Defense Ministry employees will agree to go into voluntary retirement. They will be replaced by 110 new hirings.

Last year, the Israeli defense establishment agreed to adopt efficiency recommendations drawn up by the international consulting firm McKinsey in agreement with the Brodet Committee’s recommendations to save NIS 30 billion over the coming 10 years. The multi-year program, which is expected to save taxpayers up to NIS 1.62b. annually, includes cuts in human capital within the ministry, a 30% cut in the ministry’s delegation in New York, and savings on procurement, construction and maintenance.

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS