Israel Postal Company is on the way to recovery with a recovery plan and collective agreement

Sep 19, 2022

The Ministry of Finance, the management of the Israel Postal Company, the Histadrut, and the workers’ representatives, signed today the recovery agreement of the Israel Post Company as part of the reform of the company.
Due to the dire financial situation of the Israel Postal Company, which manifested in losses of hundreds of millions of NIS per year and significant cash flow challenges, the Ministry of Finance, the management of the Israel Postal Office, the Histadrut, and the workers’ representatives signed the company’s recovery agreement today (Monday).

As part of the settlement, the Accountant General signed a financing agreement consisting, among other things, of the sale of some of the Post’s real estate assets to the state, which is expected to stabilize the company’s problematic situation. Furthermore, a collective agreement designed to allow the retirement of 1,050 workers, as well as to ensure the management flexibility required for the company, which is in a competitive environment and is preparing for the privatization of 100% of the company’s shares, according to the outline agreed upon by the Ministers of Finance and Communications.

The state support and additional efficiency measures formulated by the company’s management are expected to improve the company’s profitability and assist in its privatization as soon as possible.

Histadrut chairman Arnon Bar-David said at the signing of the agreement: “This is an important agreement that reflects the proper balance between concern for the status of the workers and their occupational security and ensuring the strength of the Israel Postal Company in the face of future challenges. The postal workers were and will remain important partners in the efficiency of society and the improvement of the service provided to all citizens of the country. I want to thank all those involved in the negotiation process, which helped to reach agreements and overcome the obstacles on the way. Thank you to the chairman of the Government Employees’ Union, Ariel Jacobi, and to the entire Israel Post workers’ organization led by Shimon Farjon for demonstrating responsible leadership. The Histadrut will continue to be there all the way, both for the retiring employees and for the employees who continue to march the Israel Post forward.”

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