Cellcom signed a collective agreement with the workers' committee: will be able to lay off up to 150 employees in the next 3 years

The cellular company Cellcom signed a 3-year collective agreement with the workers' committee. The company will be able to lay off up to 150 employees (50 employees per year) in consultation with the committee, and the employees will receive improved pay conditions.
According to the new agreement - which, contrary to the previous agreement and to the company's delight, this time was conducted quietly and without conflict - signed between Cellcom CEO Avi Gabay, Chairman of the Cellcom Employees' Committee Maya Yaniv Vicki, pioneer chairman of the Histadrut in 2022 and 2023 Employees have an average wage increase of 3%.
The employee participation clause in the company's profit remains unchanged at 12.5%, above an operating profit of NIS 400 million per year and will be passed on to employees on a quarterly basis, in the form of a profit participation grant. In this respect society can be calm. The employees did not really notice that since 2015 Cellcom has not presented such an operating profit (despite EBITDA of more than NIS 900 million in the two years). Far from it. In 2020 the company reported an operating loss of NIS 23 million, in 2019 the operating profit was NIS 24 million. In 2018 it stood at NIS 74 million, in 2017 at NIS 297 million, and in the years 2015-2016 at NIS 310 million each year.
According to the company's announcement, after 3 years each employee will be entitled to open a study fund and the company will participate at a rate of 7.5% of salary (as is customary). This is a benefit that employers are not obligated to give to employees in the private sector. The minimum wage in the company will continue to be about 7% above the minimum wage set by law, ie about NIS 5670, the value of the convalescence day will continue to be about NIS 500 per day. The employees will continue and will be entitled to an annual payment of NIS 1,000 per year. The employees will also receive a bonus in the form of an increase in the welfare budget for each recruitment of a new customer to the company on their own initiative, at a rate of up to NIS 2 million.
In addition, employees who reach the age of 60 may apply to retire on the terms of a bridging pension. The company is committed to the "employment stability" clause similar to the one in the public service, the establishment of a scholarship fund for academic studies for employees and their children.
Avi Gabay, CEO of Cellcom: "The agreement allows us to continue to improve the level of service to our customers and improve the company's operational excellence. The employees are an important and significant asset of mine and I am pleased with the signed agreements, which allow us to employ employees on very good terms." The company's expenses for the changing reality. "
Mia Yaniv, Chairman of the Cellcom Employees' Committee: "Especially in complex and challenging times for the cellular market, there is nothing more important to an employee than a stable and strong agreement that has the power to provide job security, wage conditions with a clear horizon and especially an upright and solid backbone. Expected in the market. "
In its reports for 2020, the company reported good reports for the corona period. Revenues amounted to NIS 3,676 million, compared with NIS 3,708 million in 2019. The member lost NIS 170 million, but managed to generate a cash flow of NIS 250 million, compared to NIS 210 million. Adjusted EBITDA amounted to NIS 918 million, an erosion of only 2.3% compared to 2019.
At the end of the year, the number of cellular subscribers was 3,204,000 (excluding 427,000 data subscribers). After deleting 19,000 Cellcom TV subscribers the number of subscribers stands at 252 thousand subscribers. Currently, about 105,000 customers are connected to the fiber infrastructure, out of about 600,000 households in buildings connected to the IBC infrastructure - doubling compared to 2019.
The extensive streamlining measures reduced the Company's expenses (without depreciation and without the effect of the merger with Golan) by NIS 110 million compared to 2019. Golan Telecom's contribution in the four months of 2020 to net profit amounted to NIS 20 million.