SAP’s attempt to cancel collective agreements struck down by the Ministry of Labour

Just before the holiday of Shavuot, the Labour Relations Unit at the Ministry of Labour has soundly rejected tech giant SAP’s unilateral attempt to cancel its standing collective bargaining agreements. The regulatory body firmly ruled that the agreements remain legally binding, dealing a significant blow to corporate attempts to bypass organised labour. This decision vindicates our immediate legal and organisational intervention. Tech giants cannot simply rewrite the rules of engagement when it suits them. Collective agreements are not optional guidelines; they are legally binding compacts that guarantee stability for both the business and its workforce.

The rule of law prevails over corporate unilateralism

SAP’s attempt to dissolve its union contracts failed to meet the strict statutory prerequisites outlined in Section 10 of the Collective Agreements Law. Furthermore, the company violated the explicit terms of its own commitments, which require a minimum of three months’ notice prior to expiration. Our legal team successfully demonstrated that the 2020 and 2024 agreements were automatically extended for 24 months, securing worker protections through 31 March 2027.

The gravity of SAP’s corporate overreach has drawn national scrutiny. The Knesset’s Labour and Welfare Committee is set to convene a special session this week to address this extreme behaviour, signalling that the exploitation of tech workers will not be tolerated.

“The management of SAP attempted to advance a unilateral move that fails to meet legal requirements. The collective agreements remain in effect, and the employees will continue to be protected. We always strive for peace and dialogue, but we will not allow the infringement of workers’ rights or the bypassing of signed agreements,” said Yaki Halutzi, Chair of the Cellular, Internet, and Hi-Tech Workers Union

The struggle at SAP Israel is far from an isolated incident; we know it mirrors a volatile global trend. As the multinational tech sector undergoes rapid restructuring, companies worldwide are increasingly attempting to erode worker protections, dilute union density, and bypass established labour frameworks. True innovation cannot thrive at the expense of worker insecurity. The Histadrut remains unyieldingly committed to defending collective bargaining, resisting corporate unilateralism, and ensuring that the dignity, rights, and voice of every worker are respected.

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To understand the opening salvos of this specific conflict, read the urgent warning issued by the Histadrut, detailing how SAP Israel is “playing with fire” in its move against collective agreements. As management’s defiance intensified, the frontline resistance became highly visible; you can explore the details of how SAP Israel workers protested the attempt to cancel collective agreements
outside the CEO’s private residence, demonstrating that high-tech employees refuse to be treated as mere spreadsheet items. To see how this dispute has scaled into an international battleground for corporate accountability, read how the Histadrut has filed a formal OECD complaint against SAP Israel.