Text size

It pays to work for the Teva Pharmaceuticals (TASE, Nasdaq: TEVA): 1,100 of the drug company's employees in Kfar Saba are in for a 5% raise, on average.

The workers have received a new two-year standard agreement that applies not only to directly employed workers, but to temporary ones as well.

The workers will get their raises on two dates: 3% from July 2006 retroactive to January 1, 2006, and the rest from October.

The agreement was signed by Teva Kfar Saba manager David Reisman and the union representative, Max Zagori.

The union and plant management also agreed that if the consumer price index increases by 4% or more from January 1, 2006 to any date in 2007, the workers will receive compensation in the form of another 1.5% raise from the following month.

If the CPI increases by 5% or more, then from the following month the workers will receive another 1% raise (totaling 2.5%), and if the CPI jumps by 6% or more, they will receive a total of 3.5% more. If the CPI jumps by 7% or more, they'll get 4.5%.

Moreover, Teva will foot the bill for the workers' children to study at institutes of higher education, and will share in the costs of high-school education as well. The workers also get some company participation in a personal accident insurance program.

Teva will stop financing daycare for female workers, but in exchange, will give each a 2% raise from January 1, 2007.