After announcing in February that it intended to cancel all collective agreements at the company, SAP Israel’s management signed a new agreement with the Histadrut and the workers’ committee on Monday, under which all collective agreements at the company will be renewed for an additional three years.
The new agreement, which will apply to 800 employees, preserves the full range of rights and benefits established under previous agreements, including a salary increase mechanism, employer-funded health and dental insurance, provisions guaranteeing employment security in the event of layoffs, and a 4.5% increase in employee welfare budgets.
At the same time, the parties agreed to establish a new restructuring process within the company as part of efforts to address changing market conditions.
Under the agreement, any future restructuring process at the company will begin with a voluntary retirement program and, if necessary, will be followed by a limited number of layoffs. Any worker who leaves voluntarily or is dismissed as part of the restructuring process will be entitled to enhanced severance conditions, including a special grant of up to 33 months’ salary, a bonus, additional grants based on age and number of children, and three months’ notice while maintaining full employment conditions.
In addition, the agreement includes changes to several organizational procedures relating to disciplinary matters, procurement, information systems, infrastructure, performance improvement processes, and their alignment with the procedures of the global company.
The agreement also formalized the company’s remote work policy, allowing employees to work from home two days per week.
The struggle against the cancellation of collective agreements
In February, SAP management unilaterally announced its intention to cancel the company’s collective agreements. Following intervention by the Histadrut and a determined campaign by employees, which included, among other actions, declaring a labor dispute, demonstrations outside the homes of senior executives, and appeals to the relevant authorities, the Commissioner of Labor Relations at the Ministry of Labor determined that the request to cancel the agreements had been made in violation of the law and the provisions of the collective agreements themselves.
Chair of the Histadrut’s Cellular, Internet and High-Tech Workers Union, Yaki Haluzi, said: “The agreement signed today ensures stability for SAP employees in Israel and protects their rights in the coming years. After a complex period of disputes and intensive negotiations, we succeeded in reaching understandings that balance the company’s needs with the protection of employees and their employment security. The agreement includes advanced mechanisms for addressing the challenges facing the high-tech sector, alongside favourable retirement conditions and the regulation of significant issues for employees. I congratulate the workers’ committee, company management, and the negotiating teams for the responsibility and determination that led to this important and meaningful agreement.”
SAP Workers’ Committee Chair Gad Ravid said: “SAP is a unionised company, and that is how it has been and how it will remain in the future. The collective agreement we have signed provides employees with employment security, excellent employment conditions, and a significant support package for the day after [leaving the company]. At a time when the high-tech sector is facing upheaval and uncertainty, the stability provided by a strong workers’ committee is a genuine asset. Even during periods of change, employees will not be left alone; they will benefit from real protection and certainty regarding their future.”
The negotiations on behalf of the Histadrut were also accompanied by Alon Weinbern, National Division Manager at the Histadrut’s Cellular, Internet and High-Tech Workers Union, along with workers’ committee members Izat Bar and Avi Rokach, and attorneys Gilad Zvida and Amir Basha.
Representing SAP were Pietro Iurato, the company’s Regional Human Resources Manager, local Human Resources Manager Moran Melmud, and attorney Haya Ehrman from Herzog Fox & Neeman law firm.