The Construction and Allied Industries Union, the Israel Builders Association, and the Renovation Contractors Association, headed by Eran Siv, have signed a collective agreement aimed at improving the conditions of workers in the construction industry and raising their salaries, as well as a broader commitment by employers to employee safety. The agreement, which is an update to the 2015 collective agreement, is valid for a period of five years, subject to the government issuing an extension order.
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The construction and infrastructure industry in Israel employs some 340,000 people, of whom some 250,000 are Israeli. The agreement includes an update of the industry minimum wage to one higher than the general minimum wage, automatic updates between pay grades, incentives for professional and safety training, and improvement of employee conditions in other fields. Moreover, due to the chronic shortage of site managers in the construction industry, site managers will receive a significant wage increment to encourage veteran managers to remain in the industry.
The collective agreement also stipulates that employers should increase investment in worker safety and send employees for practical safety training. They will be trained to work at heights and receive additional on-site safety training. Training will be held in several languages. A previous safety agreement signed in 2018 was also updated in order to simplify its implementation.
The Foundation for the Encouragement and Development of the Construction Industry in Israel, jointly operated by the Histadrut Labor Federation and the Israel Builders Association, has in recent years been working to reduce the number of accidents in the industry and runs various work safety training programs. In the future, it plans to establish an academy of construction industry professions to train the next generation of managers and employees in the industry.
Histadrut Labor Federation Chairman Arnon Bar-David said: Dozens of workers in Israel lose their lives every year in the construction industry because of serious safety issues. We cannot get used to a reality where a person goes to work and does not know if he will return home to his family safely. I welcome the agreement, which both takes care of safety in the industry and improves workers' conditions and their wages. I am hopeful that we are setting out on a new path that will save lives in the construction industry. I thank Yitzhak Moyal, my friend Raul Sarugo for partnering with us on this path, the Renovation Contractors Association, and everyone who was involved in the signing of this important agreement. We will continue to work for the benefit of workers in all sectors of the economy."
Israel Builders Association President Raul Sarugo said: "We are very proud of the addendum to the agreement. The construction and infrastructure industry is the growth engine of the economy. This is another important tool for expanding the numbers of people employed in the industry and recruiting many Israelis who will be able to contribute to its continued growth. The conditions for employees in the industry are among the best in the economy and it [the agreement] opens for those working in the industry or those joining its ranks and occupational and managerial horizon in which the sky is the limit. The industry's employees are dear to us. They are our partners every day in building the State of Israel and taking it forward. We thank our partners to the agreement, the chairman of the Histadrut's labor committee Amit Gottlieb and his team, and we call on the state to continue working together with us to overcome the manpower shortage in our industry so that we can continue to build the country and meet the high demand in the housing market."
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Chairman of the Construction and Allied Industries Union, Yitzhak Moyal, said: "After arduous negotiations with countless ups and downs, we reached an agreement that brings good news, raises wages for all workers in the industry and gives them decent working conditions. The industry minimum wage will rise during the period of the agreement to NIS 6,300 per month, making it the highest minimum wage in the economy.
"The agreement also includes automatic salary level upgrades for employees and an incentive for employers to refer employees to professional training courses through the Foundation for the Encouragement and Development of the Construction Industry. Per hour wages for crane operators will also be raised and site managers will be eligible for an extremely significant wage raise of almost 50%. The agreement also includes a significant improvement in wages for renovation industry workers."
Moyal added: "The agreement is a major boost for the industry, which is the growth engine of the economy. The workers in the industry are fully deserving of it. I would like to thank Arnon Bar-David who stood by me throughout the difficult negotiations, I would also like to thank the team at the Histadrut and to add a good word for Israel Builders Association President Raul Sarugo for his understanding.".
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