Food giant Osem plans to reduce the salaries of the sales division of more than 100 employees

Food giant Osem is not content with raising consumer prices to improve profitability. The company plans to reduce the salaries of the sales force division. This is a division of more than 100 employees and is responsible for sales in the amount of NIS 4 billion. Yesterday morning, the brigade's workers decided to strike a warning strike with the approval of the Histadrut and did not go to work in the field.
Chairman of the Trade Division Workers' Committee, Shlomi Aviv, said that "the company wants to cut our sales component by 20%, so we stopped the work. For years we have hired including a component whereby the more salespeople sell the more they earn. Now management wants to change the calculation and hurt our pay.
"Osem claims that there is a change in trends in the market that requires it to make changes, but from my knowledge from the system I can say that we as Osem sell a lot, and the company is profitable. There is no reason to make changes with us."
It was also learned that Eliezer Blue, chairman of the Food and Pharmaceutical Workers' Union of the Histadrut, was in talks with the Osem management yesterday, which in the face of the strike threat agreed to freeze the cuts plans for a month and enter into negotiations with the committees and the Histadrut.
Blue: "Osem wants to make an organizational change that will harm the job security and earning capacity of the division's employees. We do not agree with that. These are workers in a collective agreement who work according to basic wages and incentives and meeting goals, so we will not agree to that."
Osem responded: "Nestle Barn has excellent relations with all employee representatives. This is a discussion about a spot organizational change among private market employees and in no way deals with wage cuts. The company discussed with employee representatives and both parties reached an understanding and agreement that they will continue to discuss the job".
About a week ago, Osem announced an average price increase of 4.6%. In a letter sent to retailers, the company announced that it would increase the price of its products at a rate ranging from 3% to 7% due to the increase in the prices of inputs and transportation.
These are dozens of products in different categories such as savory snacks, bamba, breakfast cereals, fitness, ketchup, pasta and more. As it is one of the three largest food companies in the country, the increase in prices by it means a green light for its competitors to follow in its footsteps.
The decision provoked outrage and protest among consumers and also among the food chains that hold the key to approving the price increase. In a conversation with one of the heads of the major food chains, he said: "The reason we have not approved price increases to date is because in some products and in many of its leading brands the barn has very high profitability so it can absorb my current increases. The price list submitted by Osem is for early February. An expected meeting with the company where we will enter into negotiations.
"If Osem does not agree in any way to change the rate of price increases, I am not saying that I will stop selling Osem, because there are products that must be like bamba and ketchup, but I can take into account other products that are not so essential and where there is a lot of competition, like salads, pastries etc." .
Another marketing network owner said things in a similar vein: "There will be price increases on February 1, but I am not prepared for the rate increases that Osem has set for all products. I am particularly opposed to increases in products where Osem's brand is very strong and its profitability is high."
These days Osem is holding a round of meetings with the heads of the chains in order to convince them to accept the new price list and the price increase it is asking for.