The threat of a strike at one of the largest food companies in Israel has been removed: the management of Asem-Nestle has reached an understanding with the Histadrut Food and Pharmaceutical Workers Union, according to which the minimum wage in the company will rise to NIS 6,000 a month starting in 2023. Following the understandings, the Histadrut stops all organizational measures in the company.
Last week it was published in Globes that the Histadrut is preparing for a possible complete shutdown of all Asem-Nestle activities in Israel. This follows negotiations between the parties that lasted over six months, during which the Histadrut demanded an immediate increase in the minimum wage for barn workers to an amount of 6,000 shekels instead of the 5,300 shekels that approximately 1,000 of the company’s employees received until today.
Last week, Eliezer Blue, chairman of the Histadrut Food and Pharmaceutical Workers’ Union, sent a letter to Abi Ben Esayeg, CEO of Esem, in which he emphasized that “it is unthinkable that in a company, whose annual turnover is 4.17 billion shekels and whose operating profit is over half a billion, Hundreds of Esem workers earn a basic wage that is only the minimum wage. In coordination with Histadrut Chairman Arnon Bar-David and with his full support, I call on you to immediately raise the factory minimum wage at Esem to NIS 6,000 a month. To the extent that the company’s management chooses not to move forward in the negotiations and reach agreements on the matter as well as on the other issues in the negotiations, the Histadrut will work to exacerbate the organizational measures, including a possible complete shutdown of all Nestlé-Barn activity in Israel.”
Massem told Globes on Wednesday that “in an extremely challenging business reality for the food industry in Israel and for society, we are doing everything we can to complete a balanced and beneficial collective bargaining agreement for the benefit of the company’s employees. We expect the workers’ representatives and the Histadrut to show responsibility and continue negotiations until agreements are reached.”
Today, after feverish negotiations held over the weekend, with the direct involvement of Histadrut Chairman Arnon Bar-David, the parties reached an agreement that Asem will increase the minimum wage for the employees who were at the heart of the dispute to NIS 6,000.
Histadrut chairman Arnon Bar-David / Photo: Histadrut spokespeople
“Today we are bringing unprecedented news to Asem workers. The Histadrut, the workers’ committee and the management knew how to put the working person at the center and everyone benefited from this,” said Histadrut chairman Bar-David. I will work to raise the minimum wage to 6,000 shekels a month in all factories in Israel immediately. I call on all employing industrialists to cooperate in order to strengthen the working person in Israel and improve his wages.”
The CEO of Esem Nestlé Avi Ben Esayeg stated that “Esem Nestlé has always had before its eyes the welfare of the employees, who form the core of the organization and are at the top of the company’s priorities, and so it is now. In recent months, negotiations were conducted to form a new collective agreement for a period of five years with the aim of formulating optimal conditions, while thinking long-term in favor of the welfare of the employees and the future of the company. Despite the challenges that the food industry is facing these days, we chose to continue to lead this line, and I am proud to head a company that will make sure to give the workers the best agreement that can be given. I would like to thank the chairman of the Histadrut Arnon Bar-David as well as the chairman of the Histadrut Food and Pharmaceutical Workers Eliezer Blue for the cooperation.”
“After persistent negotiations, we managed to bring good news to the workers that their base salary is close to the minimum wage in the economy,” said Blue. “By the end of the agreement period, the minimum wage will reach NIS 6,400 a month. I thank Histadrut chairman Arnon Bar-David for his involvement in the negotiations, the workers’ committee and the company’s management.”