Israel Railways management and workers committee signed a new retirement agreement yesterday, after more than a year of negotiations. The Government Companies Authority and Ministry of Finance Director of Wages were parties to the talks. Sources inform ''Globes'' that 150 employees will retire under the plan with increased severance compensation of 130%.
The retirement plan is limited to one year, and includes two methods for retiring: an early retirement track; and an increased severance pay track for employees to do not meet the age and seniority terms for the retirement track.
The retirement plan will cost NIS 85 million, which Israel Railways will finance from its own resources. Retiring employees will receive NIS 300,000-700,000, depending on the retirement plan they choose.
The negotiations between Israel Railways’ management and workers committee were difficult. The parties are still continuing negotiations on a new wage agreement and structural reform at the company, which will include the establishment of a subsidiary for cargo operations.
Sources close to the negotiations said that Israel Railways was now waiting for the government to approve the wage agreement. Reports claim that Israel Railways employees will receive a wage hike greater than the 5% hike over three years granted to public sector employees.
Israel Railways said in response, “The plan is one of the streamlining measures that Israel Railways is undertaking. It will enable employees to retire with improved terms and allow for the hiring of new staff needed to meet the company’s projected growth.”
Published by Globes [online], Israel business news - www.globes.co.il - on October 1, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007