labor relations and wage rules in the public sector in Israel have are unchanged since the 1950"

"The framework of labor relations and wage rules in the public sector in Israel have remained almost unchanged since the 1950s." This is stated in a report on the wage strategy in the public sector in Israel, published by the Organization for Economic Co-operation and Development (OECD), which includes a review of the wage mechanisms and bargaining systems in the public sector in Israel, along with operational proposals for efficiency.
In the report, the authors point to various characteristics of the salaries of public sector workers in Israel, which they claim adversely affect recruitment, retention and management processes, and suggest ways to implement reforms based on what is happening in the member states of the organization.
The report shows that as of 2017, 10.4% of GDP and about 26.3% of public expenditure in Israel is spent on public sector wages - significantly higher than the OECD average of 9.2% and 22.8%, respectively.
"The public sector workforce must be skilled, capable of planning and able to show flexibility in response to change," the organization emphasizes, adding that a modern wage system tailored to public sector goals and based on positive labor relations will enable governments to attract, retain, manage and reward skilled workers And valuable talents, which will contribute to the existence of a productive and stable public sector, so that the high wage expenditures will be reflected to the public in an efficient, accessible, and optimal government service. "
Directly following this, the report raises a number of recommendations for streamlining the wage system in the public sector in Israel. Among other things, the organization explains that increasing the base wage at the expense of wage increases will increase transparency in the wage world, improve recruitment and mobility in the public sector. Calls for job descriptions to be adapted to the flexible digital age, while reducing the number and details of their classification.
The report states that in Israel there is a complicated system of wage linkages between different sectors within the public sector. Eliminate linkages between different sectors, so that a specific, tailored and event-dependent intervention in wages and working conditions in a particular position will not lead to a sweeping automatic effect and irrelevant breadth of consequences. "
Two other significant changes that are recommended in the organization are reducing the importance of the seniority component in salary and adjusting the level of salary to skills rather than employee seniority, similar to the private sector. "There seems to be a mismatch between salaries and skills in specific positions in Israel. In addition, there is no uniformity in the ratio between the average salary in the private sector and the average salary in the public sector between different occupations ... hence the relative attractiveness of public sector jobs varies," it said.
Another recommendation the organization proposes is to examine the granting of managerial powers and flexibility to the field in the worlds of reward, which "are capable of bringing about better performance and the ability to attract employees with required skills in a way that can improve public sector productivity." The organization cites as an example the British model, according to which the various offices have their own budget and they decide how to direct salary benefits to specific positions and employees.
The authors of the report also refer to the dominant employment framework in the public sector in Israel - collective agreements, and call for "establishing a clear and transparent set of rules for use in various forms of employment (collective agreements versus individual contracts), and avoiding situations where managers are represented by the same workers' organizations." .
In this context, the organization argues that there are many benefits to employment in collective agreements, such as the ability to preserve cross-cutting values ​​and a dedicated and independent workforce, but stress that this form of employment may also respond less well to rapid change and reforms. "Expanding the employment method through a personal contract to additional management positions or to technological positions may serve as a key to achieving greater flexibility and attractiveness," the report said.
Meanwhile, the organization offers a number of ways to improve labor relations and bargaining systems in the public sector in Israel, including limiting the timing and use of declaring labor disputes and protecting vital services from strikes.
The organization also recommends increasing the frequency of meetings between committees and managements outside the context of crises or conflicts and establishing alternative institutions for resolving conflicts in Israel, which can operate without the pressure of a strike. "Frequent declarations of labor disputes and the imposition of sanctions and strikes, lead to a high rate of loss of working days in Israel and indicate a system that does not work for the benefit of the public and stakeholders. Report writers.
In a similar context, the organization proposes to create budgetary constraints and principles for determining the rate of increase in wage expenditures, which will "help to create a 'what's on the table' framework to improve the negotiation process and preserve the democratic right of elected governments to allocate public expenditures based on their political priorities. ".
The authors of the report continued to criticize the power of workers 'organizations in Israel and recommended looking for ways to bring to the negotiations more perspectives of the employer and re-examine the scope of issues on which representatives of workers' organizations negotiate. The workers, but to include them as partners in planning the reforms instead of opposing the change. "
At the same time, the authors of the report argued that "workers' organizations in Israel are now given the ability to intervene in day-to-day work matters, which in many other OECD countries will be considered data for the prerogative given to management only. "The Israeli government is advised to change the scope of the concept of 'working conditions' for which negotiations should be conducted, along with finding ways to encourage constructive participation of organizations and employees in management reforms and building mutual trust."
The Histadrut stated in response to the report: "Women and workers are the engine of growth of the Israeli economy and if there is a lesson that the whole world has learned from the Corona crisis, it is the need to strengthen public systems. Any attempt to harm the public sector will weaken the state's ability to respond to citizens in the next crisis.