NIS 50 per hour: Agreement in Egged rise wages to the highest in the industry

After a successful night’s negotiation, Histadrut the Egged Workers’ Committee signed an agreement with the Egged management to increase the starting salary by about 15% from the August salary – and it will be the highest in the industry. Two additional increases are expected in the coming year according to seniority, up to the salary of NIS 65 per hour

The Histadrut, the Egged Workers’ Council, and Egged’s management signed a new wage agreement at the company tonight. As a result, starting this month (August 2022), the base wage in Egged will be the highest hourly wage in the industry, NIS 50 per hour. This agreement breaks the wage ceiling for public transportation workers, benefiting approximately 3,500 drivers immediately. To illustrate, a beginner driver whose basic hourly wage was NIS 43.5 per hour will earn 15% more and, every month will benefit from an increase to the basic wage of approximately NIS 1,200 for a full-time position.

Furthermore, an additional increase in two installments was agreed upon, which will increase the salary even more, depending on seniority. In three months, in November 2022 – all employees with 15 years of seniority in Egged and above (approximately 800 employees) will receive two additional shekels to the hourly rate. In July 2023, all employees with a seniority of 10 years or more will receive an addition of approximately NIS 2.60 to the base rate. After the extras, a driver with maximum seniority will receive an hourly rate of up to NIS 65 per hour of work.

In addition, the company’s auditors’ salaries will increase by about 20%, and the wages of the maintenance workers (second generation) in the company will increase by more than 8%. Furthermore, retiring second-generation workers will receive free travel certificates.

Chairman of the Histadrut Arnon Bar-David: “We are coming out today with real news for Egged drivers. The thousands of workers who take care every day to drive us safely – can hold their heads high and know that they are being rewarded for their hard and strenuous work. I believe this move significantly strengthens the industry and its employees, and other companies will follow suit. I want to thank the Chairman of the Transport Workers’ Union, Avi Adri, and his people, who, with their determination, brought about this beneficial agreement for the workers. Thanks also to the management of Egged, who understood that strengthening the workers is strengthening the company as a whole.”

The Chairman of the Histadrut Transportation Workers Union, Adv. Avi Adri: “We are more than proud to close a circle and bring today the leading wage agreement in public transportation. We broke the glass ceiling when the wage table in the union started immediately at NIS 50 per hour. The cherished and appreciated by their loyalty to the company veterans will benefit from additional wage increases. We will continue to lead the wage and employment conditions in public transportation as we have done in all the companies incorporated with us.”

Egged’s Chairman and CEO, Avi Friedman: “Egged’s employees are the company’s most important asset, and I welcome the agreement reached in full cooperation with the workers’ committee and the Histadrut. The new agreement is proof of the importance that Egged attaches to the well-being of its employees and will allow for the absorption of additional employees into the Egged family, who will benefit from the best wage conditions in the industry.”

Chairman of the Egged Workers’ Council Kobi and Ahnish: “This is an unprecedented achievement for Egged drivers. After constant negotiations between the workers’ committee and the Histadrut, we reached the highest wage table in public transportation. I would like to thank the secretary of the national committee, Moshe Salmi, and the secretaries of the regions for their cooperation on behalf of the workers in the union. Together with the Histadrut, we will continue to take care of the workers’ rights.”