AIG Israel Workers Declare Labor Dispute Over AI Job Replacement Concerns

The workers' committee at AIG Israel announced a labor dispute on Sunday due to unresolved disagreements with company management regarding the renewal of the collective labor agreement after nearly a year of negotiations. The committee claims the dispute centers not only on the agreement terms but also on management's plan to pilot AI tools that could simulate employee roles, potentially leading to job cuts and threatening employment stability. The committee demands that AI implementation be included in the collective agreement.

In a message to employees, the committee stated they had tried to avoid this conflict but saw no alternative, citing a significant gap between management's offers and what is customary in the labor market. Following the dispute declaration, a 15-day cooling-off period will allow attempts to bridge differences. If no progress is made, the committee and the Histadrut labor federation may initiate organizational actions, including strikes.

AIG Israel employed 852 workers in 2025, up from 838 the previous year, with 574 service and sales center employees potentially affected by AI integration. CEO Yifat Reiter leads the management team, which emphasizes the company's commitment to innovation and responsible AI adoption to improve customer service. AIG expressed regret over the dispute declaration, affirming ongoing serious negotiations and the intention to reach a balanced agreement with employee representatives in accordance with legal requirements.