Hanan Friedman (photo by Magma Images, Oren Dai)
The management of Bank Leumi signed a new collective agreement with the employees under which the bank will be able to hire workers under the collective agreement without giving them tenure and at the same time a bonus payment mechanism was established that would depend on the bank’s profits. The payment of the bonuses will be staggered so that the employees can receive the full bonus if the return on the bank’s equity reaches 17%.
Bank Leumi says today that the new agreement is modern and supports the digitization of the bank, while at the same time as the bonus mechanism, it allows management flexibility for the management.
More in-
They also say today in Leumi that in order to increase the bank’s managerial flexibility, against the background of changes in the banking market, the bank will be allowed to employ workers under the collective agreement, without granting tenure, for a period of up to 10 years in a graduated manner according to the employee’s seniority and no more than 6 additional years .
The agreement establishes an orderly mechanism of a budget for periodic salary promotions for the employees for the coming years, the rate of which is based on the return on the bank’s capital, in a way that will enable all employees to continue to achieve high returns and its distribution will be done differentially according to the performance of each employee in order to encourage excellence and performance-based compensation. In addition, in order to harness the employees every year to achieve the goals of the work plan, at the beginning of each year the management will publish the goals for the achievement of which a bonus will be paid based on the annual results. The yield determined for payment of a full grant in respect of 2023 is 17%.
CEO of Leumi, Hanan Friedman: “The successful agreement we reached in cooperation with the workers’ council will allow us to continue to establish Leumi in the financial system in Israel. We have worked hard to both allow us to take care of the future of our employees in an optimal way – in a variety of aspects, and also to allow the bank maximum management flexibility in order to enable the continued growth of the bank,
“In view of the changing reality and the many challenges that are still ahead of us. I thank all those involved in the craft who formulated this important agreement, the bank’s management and the workers’ committee, and believe that today we are embarking on a path that will allow us to fulfill the many goals we have set for ourselves.”
The heads of the workers’ council, Ron Levy and Roy Kenneth: “The new labor agreement strengthens organized labor and is a real boon for Leumi’s employees, the high-quality and dedicated force that drives the bank, and no less importantly for Bank Leumi, the workplace that is also our home. We believe that the outline we formulated In fruitful cooperation with the management, it will allow us to march Leumi together to realize the business challenges and strengthen its position in Israel.”
Comments to the article(0):
Your response has been received and will be published subject to the system policy.
Thanks.
for a new comment
Your response was not sent due to a communication problem, please try again.
Return to comment