Mekorot, Israel’s national water company, has signed a new five-year collective agreement with its employees, including cumulative wage increases of more than 20%, signing bonuses totaling NIS 13,000 per employee and new professional advancement opportunities.
The agreement was signed on Monday by the Histadrut labor federation, the Histadrut Maof division, Mekorot management and the company’s workers’ organization. It also includes increased pensionable pay, an excellence bonus equivalent to one month’s salary, an expanded employee welfare budget and targeted wage increases for field workers responsible for operating and maintaining the country’s water infrastructure.
For the first time in Mekorot’s history, the agreement establishes professional advancement tracks across all levels and core positions in the company. It is intended to allow employees to progress throughout their careers in recognition of their experience and expertise.
The agreement also introduces a new salary-range model that raises minimum pay levels and expands opportunities for wage progression. Employees who have reached the salary ceiling in their current employment track will be able to continue advancing under the new model.
The agreement comes amid competition for skilled workers in engineering, technology and operations, as Israel’s water sector prepares to address growing challenges in the coming years. It is intended to improve employee retention and recruitment while strengthening the company’s ability to maintain operations during routine and emergency situations.
Energy and Infrastructure Minister Eli Cohen said the agreement would help preserve Mekorot’s role as Israel’s national water company, following its response to recent emergencies, including an algae bloom incident at sea and the shutdown of desalination facilities.
“The agreement with the company's employees is an important component in preserving and consolidating the company as Israel's national water company,” Cohen said.
Histadrut chairman Arnon Bar-David said the agreement reflected Mekorot’s transformation into a technology-driven company and the importance of investing in its workforce.
“I am happy and proud of this important agreement, which adds another significant component to Mekorot's development from a low-tech company into a high-tech company. Today's Mekorot is an innovative, technological and developing company that has become a leader in its field,” he said.
“We are proud of its success and proud to be part of its journey. This agreement is the result of ongoing investment in human capital, good labor relations, cooperation and a shared commitment to the company's continued growth and progress.”
Bar-David added that the Histadrut was proud to be a partner in shaping the company’s future.
“I am proud that the Histadrut is a significant partner in the process shaping the new Mekorot, and proud of an agreement that will strengthen both the employees and the company in the years ahead,” he said.
Mekorot chairman Moshe Shimoni said completing the collective agreement had been one of his priorities since taking office, following approximately two years of work on the terms.
“Since taking office, I have made completing the collective agreement one of my main priorities. Work on the agreement has been ongoing for approximately two years, and I am pleased that we have succeeded in bringing it to fruition,” he said.
Shimoni said the agreement would support the company’s continued development while recognizing the importance of its employees.
“The agreement will enable Mekorot to continue developing and meet the national challenges it faces, while preserving the human capital that is our most important asset.”
He pointed to the company’s role in maintaining the water supply during the recent shutdown of private desalination facilities.
“These events once again highlighted how essential the experience, professionalism and dedication of Mekorot's employees are, and how important it is to continue investing in them,” he said.
Mekorot CEO Danny Sofer said the agreement reflected the company’s commitment to its employees, particularly field workers responsible for maintaining a reliable water supply.
“The new agreement reflects our commitment to Mekorot's employees, who are the foundation of the company's resilience and its ability to fulfill its national responsibilities,” he said.
“The company's employees, and especially its field workers, are at the forefront of its operations and ensure a continuous and reliable water supply to every citizen of Israel every day, as demonstrated during the recent desalination crisis.”
Sofer said the agreement was also an investment in the company’s ability to recruit and retain skilled professionals to meet future challenges in the water sector.
Shimon Idan, chairman of the Mekorot workers’ organization, said the agreement was first and foremost intended to improve conditions for employees and recognize their contribution to the company.
“For us, this agreement is first and foremost good news for our employees. It includes better pay, a signing bonus, new compensation mechanisms, and broader opportunities for professional growth and advancement,” he said.
“But beyond all that, it expresses something no less important: genuine recognition of the employees' significant contribution to the company. This is an agreement that recognizes employees and cares about their future.”
Idan added that the workforce played an important role in Israel’s national security.
“Mekorot's employees are an integral part of our national security, and it is a great privilege to act on their behalf, because without water, there is no life,” he said.
Roy Yaakov, acting chairman of the Histadrut, said the agreement demonstrated the value of cooperation between employees and management, while Gil Bar-Tal, chairman of the Histadrut Maof division, described the outcome of the negotiations as significant for both sides.
Omer Hazan, deputy senior official responsible for wages at the Finance Ministry, said the agreement would give Mekorot additional management tools to promote professional excellence and recruit and retain employees.
“The agreement is adapted to the changing needs of Israel's water sector, in routine and emergency situations, and is expected to improve and streamline service to the public,” he said.
The negotiations involved representatives of the Histadrut and its Maof division, the Finance Ministry’s wage department, Mekorot management and the company’s workers’ organization.