Merkantil Bank Workers Union Threatens Labor Dispute Over Proposed Merger with Discount Bank

The workers committee of Merkantil Bank, led by attorney Alex Greenshpan, sent a strongly worded letter on Tuesday to Discount Bank's chairman Danny Yamin and CEO Avi Levi. The letter responded to the Discount Bank board's announcement the previous day about exploring a full merger of Merkantil into its parent company. Greenshpan expressed shock and anger at the public disclosures and criticized the management for damaging labor relations and trust by spreading rumors instead of providing clear information to employees.

The union emphasized its fundamental opposition to the merger examination itself, not just the terms or implementation. It warned that silence should not be mistaken for consent and that the union is prepared to take all necessary measures, including declaring a labor dispute with the Histadrut and organizing actions to protect workers' rights and Merkantil's future.

The letter concluded with a direct warning to senior management against underestimating the union's resolve, stating that the union will not stand by passively as decisions with far-reaching consequences are made.

This union response came a day after Discount Bank's board announced the strategic move aimed at reducing the group's operational inefficiency, which stood at 49.2% in 2025, the highest among Israeli banks. Discount Bank aims to lower this ratio to 43% by 2030 by consolidating headquarters and eliminating redundancies.

The merger is expected to impact Discount Bank Group's workforce, which totaled nearly 7,000 employees at the end of 2025. Merkantil itself employs about 1,500 workers and had approved a voluntary early retirement plan in December 2025, expected to reduce staff by approximately 170 over three years.