“IDF Radio" (Galei Zahal) reported today that the Bank of Israel is considering freezing or suspending grants for excellence, amounting to tens of thousands of shekels, which it is due to award employees next month.
The Bank of Israel's management will meet to discuss the issue following bitter criticism of the grants, and after several central bank employees, who oppose the bonuses because of the way the grants look to the public, and who asked State Comptroller Micha Lindenstrauss to investigate.
Sources at the Bank of Israel confirmed that it was seriously considering cancelling the bonuses because of the economic situation, even though the central bank in the past rejected just such a measure. The Bank of Israel argued at the time that the bonuses are included in the labor contracts with its employees.
Bank of Israel workers committee chairman Yaakov Elimelech said that cancelling the bonuses was tantamount to crossing a red line that would result in the immediate declaration of a labor dispute. He declaimed, "This is populism. How will it help the economy?"
Published by Globes [online], Israel business news - www.globes-online.com - on March 9, 2009
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