Labor Cancels Collective Wage Agreement

The Labor Party informed the Histadrut yesterday that it intends to annul the collective wage agreement with is workers.

Following termination of the agreement, the party's employees will sign personal employment contracts and receive diminished salaries.

The alteration to the labor agreement is part of an extensive restructuring plan initiated by party chairman Ehud Barak, with the aim of reducing the party's NIS 134 million debt by significantly reducing its operating costs.

According to Histadrut data, the Labor Part currently has 34 full-time employees in its service, 17 of them part of the collective wage agreement.

The law stipulates that an employer seeking to cancel a collective wage agreement with its employees must announce the move 60 days in advance. The agreement's annulment will therefore go into effect at the end of October.

"I am shocked by the move," said the supervisor of the Labor Party's Tel Aviv employees. "The party that defines itself as social-democratic and established the Histadrut is the one which is canceling the collective agreement and, by doing so, undermining one of its core principles."