The battle is over, SAP Israel workers secure landmark collective agreement

Following a persistent campaign led by the workers’ council and the Histadrut, a new three-year collective agreement has been signed at SAP Israel. The agreement renews all previous labour agreements for 800 employees across SAP’s local labs and sales division, safeguarding established rights while introducing modernised workplace protections. This milestone follows a unilateral attempt by SAP management last February to cancel the existing collective agreements. In response, workers declared a labour dispute and took legal action, leading the Labour Relations Division at the Ministry of Labour to rule that the attempt to nullify the agreements was unlawful.

Enhanced safeguards and tech-sector adaptations

The new agreement preserves fundamental achievements of the previouse agreements that the management was trying to cancel, including structured salary increases, fully employer-funded health and dental coverage, and robust job security mechanisms. Alongside these core benefits, it establishes updated terms tailored to the evolving dynamics of the Israeli tech sector. Future efficiency programmes will prioritise voluntary retirement before applying capped layoffs, with departing employees receiving enhanced severance packages featuring up to 33 monthly salaries plus bonuses, age- and family-based grants, and a three-month advance notice period under full employment terms. Additionally, formalised remote-work guidelines now grant employees the option to work from home two days per week, whilst budgets allocated for employee welfare initiatives have been expanded by 4.5 per cent.

“The agreement signed today guarantees stability and protection for SAP employees in Israel for years to come,” said Yaki Halutzi, Chair of the Cellular, Internet, and Hi-Tech Workers Union. “After a complex period of dispute and intensive negotiations, we reached an outcome that balances the company’s needs with job security and employee protection.”

“SAP is a unionised workplace. That was the case, and that is how it will remain,” stated Gad Ravid, Chairman of the SAP Workers’ Committee. “In an era where the high-tech industry faces volatility and uncertainty, the stability provided by a strong workers’ committee is a vital asset.”

Read more on the escalation and legal milestones leading up to this resolution:

• SAP Israel is “playing with fire” in move against collective agreements
• SAP Israel workers’ public protests against unilateral management decisions
• Histadrut filed a formal OECD complaint against SAP Israel
• SAP’s attempt to cancel collective agreements was struck down by the Ministry of Labour

A model for organised resilience in the sector

In an opinion column, labour journalist Nitzan Zvi Cohen of Davar emphasised that the victory at SAP serves as a vital blueprint for the broader high-tech industry. While the industry is seeing more and more unorganised tech firms executing sudden, wide-scale layoffs, leaving workers with little recourse, the unionised workforce at SAP demonstrated that collective bargaining enforces responsible corporate behaviour. Organised representation ensures that company adjustments prioritise employee dignity and strategic restructuring over hasty termination, proving that high-tech workers can successfully secure long-term stability without compromising technological innovation. Read the full column here.

Protecting tech workers in a changing economy

The resolution at SAP Israel highlights a cruicial imperative in the sector: ensuring that rapid technological shifts and corporate restructuring do not come at the expense of worker dignity and employment security. Collective bargaining remains the most effective mechanism for managing organisational change fairly, offering workers a clear voice and structured protections. The Histadrut remains fully dedicated to organising tech sector workers and guaranteeing that fairness, dialogue, and comprehensive protection define the future of work.