Bank Mizrahi Tefahot signed a new salary agreement with the bank's employee committee for four year

Bank Mizrahi Tefahot signed a new salary agreement with the bank's employee committee for four years. The agreement refers to the years 2022-2026 and includes wage increases and bonuses for employees, and in return increases the management flexibility headed by Moshe Larry, and guarantees industrial peace until the end of the agreement period. The agreement will apply to approximately 4,000 of the bank's employees.
As part of the agreement, it was determined that the bank's employees will receive a salary increase of NIS 1,000 for headquarters employees, and NIS 1,200 for branch employees for last year. In the years 2023-2024 salary increases of 3% will be given, and in the years 2025-2026 the salary increase will be 2%. Holders of certain positions such as authorized signatories and section managers will receive an additional salary increase.
In addition to this, the bank will give its employees a signing grant for the agreement in the amount of two salaries, while employees who started working at the bank from 2022 will receive a grant in the amount of a salary. The bank also agreed with the committee on an improvement in the rate of provisions for social conditions, so that the salary base from which the pension provisions are made and for savings in training funds will be expanded.
In return for the improved conditions, the bank achieved an improvement in its administrative flexibility. The flexibility will be expressed in increasing the number of personal contracts in the bank, flexibility to provide a salary increase beyond the agreement to employees at the headquarters (subject to certain conditions), and the extension of the period of time in which employees will be considered temporary for a period of up to 5 years for a certain number of employees. The bank will also be given the right to fire up to 70 employees during the period of the agreement. We note that the bank was also given this right in the past, but it usually does not use it, rather it is only used as a potential threat.
The bank's headquarters is expected to move from Ramat Gan to Lod in the future, and as part of the agreement it was determined that the conditions of the employees related to the move will be determined by the bank's management only. The employees' committee will not be able to make demands on the matter, and the management will only consult with it.
Despite the wage increases and grants, the new agreement is not expected to substantially burden the bank's statements. The bank notes that the agreement will increase salary expenses by NIS 85 million this year, and by NIS 30-45 million in 2026-2024. This is a minor increase compared to the rate of increase in the bank's income, certainly in this period of high interest rates.