June 28, 2010
16 Tammuz 5770
2010-0154-2158
Extension Order in the Construction Sector
Under the Collective Agreements Law, 5717-1957
By my authority under section 25 of the Collective Agreements Law, 5717-1957[1] (hereinafter – the Law), I hereby issue an order extending the application of the provisions of the general collective agreement (7009/2010) dated January 21, 2010 (6 Shevat 5770) between the Association of Contractors and Builders in Israel and the Histadrut – The New General Federation of Labor, the Federation of Building and Woodworkers (hereinafter – the Agreement), and decree that the extended provisions in the Addendum shall apply to all employers and employees (as defined in the Agreement) in the construction sector in Israel.
Furthermore, I give notice pursuant to section 31 of the Law that the extension orders to previous collective agreements in the construction sector – are void.
ADDENDUM
THE EXTENDED PROVISIONS
Article in the Agreement
6.Definition of Terms
b."employer" – Any employer in the construction and/or infrastructure and/or public works and/or civil engineering and/or renovation and/or heavy equipment sectors, including as enumerated in sections 45 and 46 of the Standard Classification Manual for 1993 published by the Central Bureau of Statistics, including all their subsections.
c."employee" – Any worker or foreman at a building site (as defined in this Order), who is employed in a non-administrative capacity.
d."foreman" – Anyone who underwent a course and was certified by the Ministry of Labor to serve as a foreman, and who is actually employed at a building site in the capacity of foreman, site manager or infrastructure implementation manager.
e."heavy equipment" – A machine designed or used for engineering construction for public works, for earthworks, for excavation, for lifting, for loading or for unloading, including a tractor and including auxiliary equipment to the above and their accessories, all as prescribed in the Registration of Engineering Equipment Law, 5717-1957, and in the Registration of Engineering Equipment Regulations, 5719-1959.
f."employer in the renovation sector" – An employer whose main occupation is the restoration, conservation and upgrading of buildings in accordance with classification 131 in the list of branches published by the Registrar of Contractors.
g."renovation worker" – An employee as defined above, who performs renovation work in the service of an employer in the renovation sector.
h."building site" – A place where construction and/or infrastructure and/or civil engineering and/or renovation work, and/or another type of work as specified in the definition of "employer" above, is carried out.
i."rated wage" – The wage specified in the wage tables in this Order for employees, for renovation workers and for foremen, as adjusted from time to time.
j."insured wage" – The wage in respect of which payments are to be made into various provident funds and/or an insurance fund – as specified hereinafter in this Order. The insured wage may not, under any circumstances, at any time after the signing of this Order, be less than the rated wage for an employee (or a foreman) or the rated wage for a renovation worker, as the case may be, as adjusted from time to time and according to the employee's grade as on the date of payment of the wage.
For the avoidance of doubt, the definition of the insured wage in this Order is not intended to detract and/or derogate from the insured wage of an employee which existed immediately prior to the signing of this Order.
k."tenure" – Tenure with the same employer or at the same place of employment.
l."tenure in the sector" – The total cumulative tenure of an employee or renovation worker or foreman in the construction sectorin Israel with all the employers, as defined above, by whom he was employed.
m."proof of tenure" – A confirmation from pension funds and/or from the previous employer(s) and/or pay slips and/or Forms 106 and/or vouchers from the tax authorities and/or from the National Insurance Institute.
n."employee representation" – A workers' committee at the place of employment.
C.Work Hours
8.Work week
The work week in the construction sector shall consist of 42 hours.
The work week shall be five or six days per week, according to the accepted practice at the place of employment immediately prior to the signing of this order.
9.Updates and changes in the work hours
Should the work week in the business sector be shortened or lengthened in the future, pursuant to an enactment or to general extension orders applying to all the employees in the business sector, the work week shall be shortened or lengthened, as the case may be, such that the work week of an employee or a renovation worker under this Order shall be one hour shorter than the work week in the business sector.
For example – as of the signing of this Order, the work week in the economy is 43 hours. Should the economy change to a work week of 42 hours, the employees to whom this Order applies shall change to a work week of 41 hours.
10.Overtime pay
Pay for overtime and pay for work during the weekly rest period shall be paid at the rates specified in sections 16 and 17 of the Hours of Work and Rest Law, 5711-1951.
11.Night work
Night work is work during a shift in which at least two hours fall between 10:00 p.m. and 6:00 a.m.
Night work is 7 work hours paid according to 8 work hours.
12.Severeweather conditions
An employee or a renovation worker who was instructed by his employer not to come to work because of severeweather conditions shall be entitled to payment for 4 work hours in respect of that day.
If an employee or a renovation worker began working, and during the day received instructions to stop working because of severeweather conditions, he shall be entitled to payment for the work hours during which he actually worked, with the addition of payment for 4 hours, provided that he does not receive, in all, more than the payment for a regular work day.
In the event of severeweather conditions, if an employee or a renovation worker reaches the pickup site from where he is transported to work in the employer's vehicle, and the employer's vehicle does not arrive, he shall be paid for 4 work hours. An employee or a renovation worker is obligated to wait for the vehicle or for instructions for at least one hour. If he waited for at least one hour, he shall be paid one hour's wage also for the wait. If he proceeded to work at the end of the wait, the hour's wait shall not be deemed a work hour.
If an employer notified an employee or a renovation worker not to come to the pickup site, and the employee or the renovation worker did so of his own accord – he shall not receive payment beyond 4 work hours in respect of that day.
If an employee or a renovation worker was instructed to wait at the place of employment due to severeweather conditions, he shall be entitled to payment for the hours of waiting in addition to the actual work hours.
If an employer or a renovation worker left the place of employment of his own accord, owing to severeweather conditions, he shall receive payment solely for his actual hours of work.
D.Wage and Adjustment Thereof
13.The tables below for workers and for foremen are the tables that shall apply from the inception date of this Order (hereinafter – the rated wage tables).
14.It is hereby clarified that starting from the inception date of this Order, wage increases and components of any nature and kind that were paid in the past pursuant to the provisions of the sectoral collective agreements (the sectoral collective orders), such as subsistence, non-absenteeism or spouse, are null and void. Their value is grossed up in the rated wage tables as detailed below, subject to that stated in section 15 below.
15.Where an employee received, immediately before this Order became effective, a salary the sum of whose components (excluding payments in respect of expense refunds) totals more than the rated wage paid in respect of his grade – the determination or adjustment of the wage tables shall not increase or reduce his salary, provided his total salary (excluding expense refunds) and his insured wage are not less than the rated wage according to the employee's grade, taking into account the percentage of his position.
For the avoidance of doubt, that stated in this Order shall not result in a reduction in the salary of an employee, foreman or renovation worker, inclusive of all its components, that was paid immediately before this Order became effective.
16.An employee (excluding a renovation worker) shall receive a monthly salary according to the following wage tables:
Grade / Wage under this Order1 / 4350
2 / 4850
3 / 6260
4 / 5,400
5 / 5,750
6 / 5,900
7 / 6,000
8 / 6,200
17.A foreman (including a foreman in the renovation sector) shall receive a wage according to the following wage tables:
Grade / Wage under this Order1 / 6,550
2 / 7,000
3 / 7,390
4 / 7,510
5 / 7,770
6 / 7,950
7 / 8,200
18.The wage for an employee, for a renovation worker or for a foreman in the construction sector shall not, under any circumstances, be less than the grade 1 rated wage for an employee as specified in section 16 above and for a renovation worker as specified in section 61 below. Accordingly, the grade 1 rated wage for an employee and for a renovation worker constitutes an agreed increment to the national minimum wage on the date of the Order.
The grade 1 rated wage as specified above constitutes the minimum wage in the sector, as this term is defined in section 33N(b) of the Collective Agreements Law, 5717-1957.
Changes in the national minimum wage after the signing of this Order shall not cause an adjustment in the minimum wage in the sector.
This section shall come into force only upon the completion of legislation of the Law for Increasing Labor Law Enforcement and its entry into effect, provided that the provision of section 33N(b) of the Collective Labor Agreements Law concerning the minimum wage in the sector shall be included in the Second Schedule to the Law.
19.Determination of wage and payment times
a.Where an employee or a renovation who is newly employed by an employer has previous sectoral tenure, the employee must ascertain the grade of the employee or the renovation worker by means of vouchers presented to him by such employee or renovation worker, and his wage shall be determined according to the rated wage table. An employee or a renovation worker who presents the confirmation belatedly shall receive payment for his grade 60 days retroactive from the date of presentation of the confirmation.
b.In the calculation of employee rights under this Order, the value of each work hour shall be the 182nd part of the rated wage as specified above.
c.Part-time position – An employee or a renovation worker holding a part-time position shall receive his wage according to the tables detailed below, taking into account the percentage of his position.
d.The date of payment of an employee's or renovation worker's wage shall be in accordance with the Wage Protection Law.
20.Grades and promotion of an employee (excluding a renovation worker) and a foreman
b.Promotion up to grade 3 (inclusive) according to the rated wage tables shall be automatic. After every three years of full employment in the sector in Israel, an employee shall advance by one grade. The count of three years begins from the effective date of this Order.
d.That stated above shall not derogate from the right of an employee or an employee representation[2] and an employer to reach a more favorable agreement concerning promotions.
21.Wage adjustments
b.Wage adjustments shall be implemented as stated below:
In the salary of January 2011 – a 2% increment to the wage specified in the wage tables in this Order.
In the salary of January 2012 – an additional increment of 4%.
c.Wage adjustments deriving from cost-of-living increments shall be on account of the wage adjustments provided for in this Order, as specified below:
Any wage adjustment deriving from a cost-of-living increment, paid between the effective date of this Order and January 2011 (the date when the 2% increment is to be paid) shall be on account of the 2% increment; any wage adjustment deriving from a cost-of-living increment, paid between January 2011 and January 2012 (the date when the 4% increment is to be paid) shall be on account of the 4% increment.
d.Where an employee or a renovation worker receives a total salary the sum of whose components (excluding payments in respect of expense refunds) is higher than the wage payable according to the rated wage tables to an employee or to a renovation worker of the same grade, his salary shall be adjusted at the rates and times specified above.
E.Social insurance and severance pay
22.Preservation of rights
For the avoidance of doubt, that stated in this chapter shall not derogate or detract from the pension insurance and the continuing education fund to which employees and renovation workers employed immediately prior to the signing of this Order were entitled, if at all, including as regards the amount of the insured wage, the deposit rates and the payment times, and in any event, that stated shall not derogate from the rates and the conditions specified in this chapter.
23.Definitions for social insurance chapter
"provident fund"/"insurance fund" – As these terms are defined in the Control of Financial Services (Provident Funds) Law, 5765-2005.
Insurance in a new comprehensive pension fund
24.Every employee and renovation worker shall be entitled, from the starting date of his employment, to insurance in an accumulating comprehensive pension fund approved by the Capital Market, Insurance and Savings Division in the Ministry of Finance.
25.As security for the employees' and renovation workers' rights in the comprehensive pension fund, the employer shall transfer to the pension fund, every month, the following percentages from the insured wage: on the employer's account – 12% of the insured wage (6% for severance pay + 6% for benefits); 5.5% shall be deducted from the employee's and the renovation worker's wage and transferred to the pension fund.
26.a.The employer's payments and the deduction from the employee's and the renovation's wage, as stated, shall be made every month for the elapsed month. The employer shall deposit the amounts in the pension fund at the times specified in law.
b.As long as the employer or the renovation worker has not chosen some provident fund or insurance fund, as stated in section 30 below, the employer shall deposit the amounts in a new comprehensive pension fund.
Insurance in a veteran comprehensive pension fund
27.Notwithstanding that stated in this chapter, it is hereby clarified that where an employee or a renovation worker is insured in a veteran pension fund – the employer shall continue to insure him in the veteran pension fund, and shall transfer to the veteran pension fund the contributions and the deductions required under any law (which stand, as of the date of signing of this Order, at 20.5% of the insured wage).
Insurance in a provident fund and/or an insurance fund which is not a comprehensive pension fund
29.Where an employee or a renovation worker who is insured in a provident fund or an insurance fund which is not a comprehensive pension fund, the deposit rates on his behalf into a fund based on the payment of benefits and severance pay shall not be less than 18.33% of the insured wage as defined in this Order (8.33% for severance pay on the employer's account + 5% for benefits on the employer's account + 5% for benefits on the employee's account), provided that in addition to the said rates, the employer also makes payments in the event of incapacity for work at the rate required for assuring 75% of the insured wage, but not more than 2.5% of the insured wage.
Employee's legal right to choose the provident fund
30.For the avoidance of doubt, that stated in this chapter shall not derogate from the legal right of any employee or renovation worker to choose any provident fund, as provided in section 20 of the Control of Financial Services (Provident Funds) Law, 5765-2005.
31.Severance pay
a.Subject to that stated in paragraph c. below, the employer's deposits and payments into a provident fund and/or an insurance fund (including a new or veteran comprehensive pension fund) for the severance pay component according to this chapter (6% or 8.33% of the insured wage, as the case may be), shall come, respectively, instead of 72% or instead of 100% of the employer's obligation to pay severance pay under section 14 of the Severance Pay Law, 5723-1963 (hereinafter – the Severance Pay Law), solely on the wage, the components, the periods and the rates in respect of which the contribution was made.
b.That stated in this section shall not detract and/or derogate from an employee's or renovation worker's right to severance pay on any wage and/or components and/or periods and/or rates in respect of which no contributions were made for severance pay.
c.The employer's deposits for the severance pay component at a rate of 6% or 8.33% of the insured wage, as the case may be, as detailed in this chapter above, are not refundable to the employer under any circumstances. These amounts and the benefit amount shall be released to the employee's ownership upon the termination of his employment.