Egged and Histadrut sign historic deal: Employees to receive NIS 50 million profit-sharing bonus

Histadrut, the Workers’ Committee, and the management of Egged Group, Israel’s largest transportation company, have signed a groundbreaking and unprecedented collective agreement under which, for the first time in the transportation industry, a profit-sharing bonus totaling 50 million shekels will be distributed to employees.
The bonuses will be distributed over the years 2024–2027, subject to meeting business targets and operator performance ratings. The agreement applies to all employees, as per established criteria.

In addition, employees who participated in the first phase of the company’s share sale to the Keystone Fund will be entitled to a sales bonus of up to 51.5 million shekels, depending on the level of options exercised, which will be distributed in two phases.

Furthermore, an additional welfare budget of 500,000 shekels will be allocated to workers annually from 2025 to 2027, further strengthening the company’s commitment to its workforce. This initiative strikes a critical balance between fair employee compensation and the company’s financial responsibility and long-term stability.

The agreement also addresses the company’s long-term financial robustness, including the establishment of a 150-million-shekel financial reserve fund to support future retirement agreements.

Signed as part of Egged’s broader business renewal process, the agreement introduces a series of measures aimed at strengthening the connection between employees and Egged’s business success. In recent years, Egged has transitioned into a business corporation with the strategic investment of the Keystone investment fund, expanding its operations both in Israel and abroad.

Arnon Bar-David, Chairman of the Histadrut:
“This agreement is nothing short of groundbreaking. The partnership between the Egged Group and the Histadrut is a longstanding one, dedicated to the welfare of employees. I am pleased that this commitment is reflected again in this agreement. As we have proven once again, the Histadrut has always been, and will continue to be, the home for Israel’s public transport workers.”

Gilad Riklin, CEO of Egged Group:
“Today’s signing marks a significant step for the future and resilience of the company. Our workers are our most valuable asset, and this agreement demonstrates our commitment to their development and investment. Through this agreement, we are laying strong foundations for Egged’s continued growth as a strong, flexible, and leading organization. We are confident that cooperation with the Histadrut and the Workers’ Committee will continue to contribute to our joint success.”

Adv. Eyal Yadin, Chairman of the Transport and Ports Workers’ Union:
“We made history. Together with the Workers’ Committee, and after lengthy negotiations with management, we created a precedent for the entire sector, when the CEO and the owners profit, so does every single worker. We must always remember that it is those who create the profits that generate bonuses and dividends. I want to thank the Committee for their patient and responsible leadership, and the management for finding a way to break new ground with us.”

Maya David, VP of Human Resources at Egged Group:
“Signing the agreement is an important milestone for Egged and its employees. It strengthens the mutual commitment between management and workers and reflects our deep appreciation for those who lead the organization day after day, our employees. This achievement would not have been possible without the fruitful cooperation with the Histadrut and the Workers’ Committee, and we thank them for the shared journey conducted in a spirit of listening, understanding, and true partnership.”

Uri Metuki, Head of the Public Transportation Division at the Transport Workers’ Union:
“I am very proud to be part of this pioneering agreement. For us, ‘no worker left behind’ is not just a slogan. Egged is a strong and profitable company, and it will become even stronger, but along the way, we must never forget the workers.”

Kobi Vahnish, Chairman of the Workers’ Council:
“This is a historic agreement. We are proud to lead public transportation — Egged workers are once again breaking new ground. We are happy to be the first in the sector to receive a profit-sharing bonus. The employees create the profit, and today, they are true partners in it.”

Moshe Salami, Secretary of the National Workers’ Committee:
“This is a historic and groundbreaking agreement for the public transportation sector in general, and for Egged in particular. The Workers’ Committee is forward-looking, determined, and committed to securing long-term financial security for workers. Beyond the historic achievements for the coming years, we demanded the establishment of a reserve fund to guarantee and secure workers’ futures for years to come, amid anticipated and far-reaching changes in the public transportation sector.”