Election day to cost employers NIS 1.3b.

Trade and services sector expected to generate NIS 1.2b. in revenue.

voting 2009 248.88 (photo credit: AP [file])
voting 2009 248.88
(photo credit: AP [file])
Election Day is expected to cost employers NIS 1.3 billion as a result of the paid vacation day, while revenues of trade and services companies will be an estimated NIS 1.2b. "Election day to elect the 18th Knesset will cost employers NIS 1.3 billion, including NIS 900 million for employers in the private sector, out of which NIS 225 million represents the cost for manufacturers," according to a survey by the Manufacturers Association of Israel released Monday. The figures did not take into account the positive effect of the vacation day on increased trade and services proceeds, but only the direct cost of salaries, the association said. Economists assume that employees who choose to work on election day will receive overtime payment amounting to 100 percent of their salary, or else an extra day's paid vacation, the association said. In line with regulations set by the Elections Committee, enterprises that will operate as usual on Election Day include manufacturing and agricultural enterprises that operate continuous production lines. Employees at these enterprises will receive overtime, while employees who do not work will receive their regular pay. Fifty-three percent of industrial factories and enterprises will be closed on Election Day, while 43% will work partially and 4% will work at full capacity, Avi Barak, head of the association's labor and Human Resources Division, said Monday. The survey found that among hi-tech companies, 50% will be shut, 33% will work partially and 17% will operate at full capacity. In the metals and electricity sector, 73% of the factories will be closed, 23% will work partially and 4% will work regularly. In the food sector, 57% of factories and enterprises will be closed, 36% will work partially and 7% will remain open. In the chemicals and pharmaceuticals sector, 29% of the factories will be closed and 71% will work partially. In the textile and fashion sector, the majority of factories and enterprises will work partially. On Election Day, the trade and services sector would try to boost business - especially shopping centers, shopping chains and restaurants - by offering specials and discounts, the Federation of Israeli Chambers of Commerce said Monday. "On Election Day, business activity for the trade and services sector will be much stronger than on a regular business day," FICC president Uriel Lynn said. "Revenues are expected to be 200 percent higher, compared with the average business day. "Many citizens will take advantage of the paid vacation day to go shopping and take part in cultural and entertainment activities. Total revenues are expected to be NIS 1.2 billion, and the number of workers will increase an estimated 5 percent," Lynn said.