New Collective Agreement for Osem- Nestle Factories, Sets Minimum Wage Above the National Level.

On Wednesday the 6th of September, the Histadrut and Osem management signed a national collective agreement for the company’s approximately 3,100 workers, and at its heart is the establishment of a factory minimum wage, seniority increment, and an approximate 10% wage increase.

The agreement applies to Osem workers employed at the company’s sites throughout the country and will be valid for five years (retroactively from April 1, 2022 to the end of March 2027). At the heart of the agreement is a factory minimum wage of NIS 6,000 (approximately $1,578.94), which will gradually increase to NIS 6,400 (approximately $1,684.21) by 2026. Salary increases include annual increments every April ( for a total of approximately %10 in five instalments).

To further improve the welfare of employees, the company agreed to generous holiday vouchers in the sum of NIS 1,120 (approximately $294.73), and increased retirement grants that can go up to NIS 13,000 (approximately $3,421.05) based on seniority at the company. Additional salary increments of hundreds of shekels in three phases for senior employees and a defence mechanism against inflation were set to strengthen the stability of workers’ purchasing power.

“This agreement provides a minimum wage that is significantly higher than required by law”

Arnon Bar-David

“By the end of the agreement period, the minimum wage will reach NIS 6,400 (approximately $1,684.21) per month”

Eliezer Belo

The agreement, which was led by Chairman of the Union of Food and Pharmaceutical Workers-Histadrut Eliezer Belo, was signed in the presence of Histadrut Chairman Arnon Bar-David, Osem CEO Avi Ben Assayag and representatives of the factories’ workers committees.

Histadrut Chairman Arnon Bar-David: “This is unprecedented news for Osem Nestlé workers and thousands of families in the State of Israel. This agreement provides a minimum wage that is significantly higher than required by law, and it also stabilizes Osem Nestlé as a company that values its workers and encourages additional workers to join the industry, so everyone benefits. This is an agreement from which all workers will be rewarded – in the factories, production lines, transportation, and distribution – and it puts the working person at the center. The Histadrut will continue to work with all its capabilities to strengthen the Israeli industry.”

Chairman of the Union of Food and Pharmaceutical Workers-Histadrut Eliezer Belo: “We were able to bring an achievement to the workers, some of whom earn wages at low wage levels. By the end of the agreement period, the minimum wage will reach NIS 6,400 (approximately $1,684.21) per month.” Belo emphasized the extent of this achievement as an outcome of complex negotiations supported by the leadership of the Histadrut, and the Chairman of the Employees’ Committee. Belo noted the significance of the Employees’ Committee’s utter mobilization in concern for the welfare of the employees. Referring to Osem–Nestle’s management, Belo stated his gratitude to their willingness to listen to their employees’ needs and negotiate better conditions: “We will continue to walk hand in hand for the benefit of the workers’ interest together.”

Osem Nestlé CEO Avi Ben Assayag: “After months of work, and in fruitful cooperation between the organization management and all the employees’ committees and Histadrut teams, we signed a broad labor agreement for five years, out of long-term thinking for the benefit of the workers’ welfare, the future of the company and the resilience of the Israeli food industry. There is no doubt that the thousands of workers in our factories and fields constitute the backbone of Israeli industry, and therefore, it is of great importance. I am proud of the fact that within the framework of the agreement, we will be the first to grant a factory minimum wage of NIS 6,000 (approximately $1,578.94), when alongside this significant achievement are other achievements, including gradual wage increments, increasing the corporate welfare budgets, and more.