Mekorot Signs New Collective Agreement with 20% Salary Increases
Translated & summarized from Calcalist by baba
Mekorot, Israel's national water company, has signed a new five-year collective agreement with its employees, featuring cumulative salary increases of around 20% and a NIS 13,000 signing bonus. The deal, costing NIS 62 million annually, aims to boost salaries for engineers and improve promotion opportunities. The agreement, pending final approval, may lead to higher water tariffs for consumers. The union chairman hailed it as a recognition of employee contributions.
The story in 6 lines · by baba
- Mekorot signed a new five-year collective agreement with employees, including 20% salary increases.
- The new agreement will cost Mekorot an estimated NIS 62 million annually.
- Employees will receive a NIS 13,000 signing bonus and annual excellence bonuses.
- Starting salaries for engineers and tech professionals will increase by 15%-30%.
- The agreement may lead to an increase in water tariffs for consumers.
- The deal was signed after two years of negotiations and requires final approval.
Mekorot, Israel's national water company, has signed a new five-year collective labor agreement with its employees' union and management, set to take effect from January 1, 2026, to December 31, 2030. The agreement, which follows two years of negotiations, includes cumulative salary increases of approximately 20% over its term, a one-time signing bonus of NIS 13,000 per employee, and an increase in the salary recognized for pension contributions. Additionally, 65% of employees will receive annual excellence bonuses equivalent to a quarter of their monthly salary, up to two additional salaries. Field workers will receive specific salary supplements, and starting salaries for academics, such as engineers, will rise by 15%-30% to compete with private sector offers. The agreement also introduces more flexible promotion pathways across different company divisions. The total annual cost of the agreement is estimated at NIS 62 million, to be funded by water tariff revenues, potentially leading to an increase in water prices for consumers. The agreement requires approval from the Director of Wages in the Ministry of Finance, Afi Malkin, who has given his preliminary consent. The average salary at Mekorot is currently NIS 27,076, significantly higher than the national average but comparable to other government-owned companies. The company has approximately 2,000 employees. Moshe Shimoni, Chairman of Mekorot's Board, stated the agreement will enable the company to continue developing and meeting national challenges while preserving its human capital, whose importance was highlighted during recent disruptions to desalination facilities. Shimon Idan, Chairman of the Mekorot Workers' Organization, called it a recognition of the employees' contribution and a commitment to their future.
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