The Ministry of Labor has rejected SAP’s request to cancel the collective agreements at the company, after determining that the agreements remain in force and that the company failed to meet the legal requirements for their cancellation, according to a decision sent to the parties involved.
In her notice to the parties, Labor Relations Commissioner Adv. Revka Verbnar explained that a request to cancel collective agreements may be submitted up to two months after their expiration — however, the existing agreements have not yet expired. She further clarified that under the wording of the agreements themselves, the company is required to notify the workers’ organization at least three months before the agreements expire of its intention to terminate them.
Accordingly, she stated that the conditions required for cancelling the agreements had not been met.
In arguments submitted by the Cellular, Internet and High-Tech Workers Union through Deputy Head of the Legal Bureau for Trade Union Affairs, Adv. Maya Tzachor Aviram, it was argued that under the collective agreements binding the parties, including the 2020 agreement and the 2024 agreement, the validity of the collective agreements was automatically extended by an additional 24 months beginning on April 1, 2025. In other words, the agreements remain in force until March 31, 2027.
A discussion on the matter is expected to take place next week in the Knesset Labor and Welfare Committee due to what has been described as the company’s unusual conduct.
“The decision reinforces what we argued from day one — SAP management attempted to advance a unilateral move that does not comply with legal requirements,” said Yaki Halutzi, chairman of the Histadrut’s Cellular, Internet and High-Tech Workers Union.
“The collective agreements remain in force, and the employees will continue to be protected. The Histadrut has acted, and continues to act, responsibly. We have always sought dialogue and mutual understanding, but we will not allow harm to workers’ rights or attempts to bypass signed agreements.”
Despite the Labor Relations Commissioner’s notice, SAP maintained that the previous collective agreements had been “permanently revoked.”
SAP said in a statement:
“The company is engaged in accelerated negotiations aimed at signing a new collective agreement suited to current realities. The company will present its position through the appropriate legal channels. A mutually agreed collective agreement that reflects the needs of the high-tech sector in the age of artificial intelligence remains SAP’s top priority.
“The agreements signed in the past are no longer relevant to the challenges currently facing the industry. In Israel, as everywhere else where SAP employs workers, this means a need for a framework that allows the agility and flexibility required by the new reality. However, these measures, which have already been adopted at SAP centers around the world, have not yet been implemented in Israel.
“Global and local management continue to work toward formulating a new collective agreement in order to ensure the long-term growth of the Israeli site and for the benefit of the company’s employees and customers.”
