CAL: efficiency program in which 60 employees will retire

The economic crisis is also coming to the credit card company CAL: the company announced today an efficiency program in which 60 employees will retire from the organization on preferential terms. This is 4% of the company's 1,500 employees.
Credit card companies have also been hit by a decline in the use of credit cards in the economy as a result of the first and second closures, as well as an almost complete halt in the use of credit cards abroad - which is a significant part of their revenues.
ICC, like other credit card companies, was hit as a result of the Corona crisis. In the first half of 2020, it earned NIS 16 million, compared with NIS 91 million in the corresponding period in 2019, a decrease of 82%, which was mainly due to provisions for credit losses.
Against this background, ICC is now embarking on a voluntary retirement program on preferential terms for 60 of its employees. The move is being formulated between the company's management, headed by CEO Levy Halevi, and the company's chairman, Adv. Ofir Harpaz.
According to the outline formulated, ICL will offer its employees to retire voluntarily on preferential terms that include increased compensation of up to 200% and associated financial benefits. It was also agreed that this is a voluntary retirement procedure, but if the quota of employees who request to retire is not filled, you can initiate the retirement of employees. At the same time, it is estimated that in light of the retirement conditions, there will be enough employees who will voluntarily apply to retire.
Until now, the company has refrained from streamlining and expatriating employees to Khalat on its own initiative, and in the first closure has made a 20% salary cut for the company's management.
The banks are also operating and Discount (ICC's parent bank) is currently carrying out similar processes. Other non-national banks have also made staff reductions. The credit card company Max also reduced its workforce by 50 employees, as published in "Calcalist" several months ago. Among the insurance companies, dismissal proceedings were carried out already in the first wave of the Corona.
Levy Halevi, CEO of ICC, said: “We are in the midst of an acute health and financial crisis, which has made the streamlining process a necessity. The recent period shows that the uncertainty will accompany us for a long time and the macroeconomic forecasts express a worsening in all business parameters also during the coming year. "
Adv. Ofir Harpaz, Chairman of the Workers' Committee: "After months of discussions, with an unprecedented economic and health crisis in the background, we reached an agreement with the management on a voluntary, unprecedented retirement plan in the company and in the industry, which is an expression of healthy working relationships."