FBC advised the international airlines company Air France – KLM in connection with negotiations towards the signing of a collective agreement with of the Histadrut – the General Federation of Labor in Israel and the employees’ committee concerning the restructuring and re-organization of the company’s city office in Israel. Nearly a year ago Air France – KLM announced its intention to undertake the restructuring in Israel, as part of global streamlining procedures taken by the company at its various branches in the world. Due to the re-organization, 17 of the company’s employees in Israel will terminate their employment at the company.
In light of Air France – KLM intention to carry out the reorganization, the Histadrut and the employees’ committee threatened to declare a labor dispute and go on a strike.
Following lengthy negotiations, a collective agreement was reached between the Air France – KLM’s management and the employees. The highlights of the collective agreement are as follows: As part of the re-organization, the company’s employees may apply to fill 11 new positions in Israel. The selection process for the new positions will be accompanied by an external professional evaluation company and with the cooperation of the Histadrut as an observer of the process.
In addition, employees whom their employment with Air France – KLM will be terminated due to the re-organization will be eligible for improved conditions of retirement, including a retirement bonus equal up to 130% of the severance pay under the law, an accompaniment service for those who were dismissed or professional training at the company’s expense, benefits in purchasing the company’s flight tickets in the future and more. It was also agreed that the dismissed employees would be given priority in manning new positions in the company in the next 5 years.
