The Ministry of Finance, the Histadrut, and the employees’ representatives signed a new collective agreement for the employees of Noga – Electricity System Management. The agreement, which will apply to approximately 500 employees of the government company that manages the operation, planning, and trade in Israel‘s electricity sector, centers on a modern and attractive salary structure. This will strengthen long-term employment stability in the company and enable the attraction of additional quality employees to “Noga.” The agreement, which also includes broad salary increases and performance bonuses, will be valid until 2030.
This is a complex and innovative agreement that complements the electricity sector reform. Thanks to it, Noga will become one of the most prominent and important companies in the public sector, while preserving and strengthening employee rights.
Key points of the agreement:
• A 3% percentage increase to the base salary, effective January of this year (as part of the framework agreement).
• A new salary structure for new employees based on clusters and levels, with minimum and maximum ranges, update mechanisms, and differential promotion increments over the years.
• A transition path for existing employees to the new salary structure.
• A signing bonus of NIS 20,000 for employees with one year or more of seniority (and a proportional bonus for employees with shorter seniority).
• Annual performance bonuses for all employees, based on defined criteria determined by management in consultation with the workers’ committee; broad eligibility for most employees in the target groups.
• Regulation of individual contracts: Reduction and affiliation of most individual contract holders to the collective agreement; defining roles in which employment can be on individual contracts and special conditions in defined cases.
• Restrictions on outsourcing and commitment to the gradual absorption of existing contractor employees into direct employment, subject to a dedicated track and in defined areas.
Oded Elkabetz, Deputy Commissioner of Wages: “The new collective agreement is a significant step in strengthening Noga’s managerial capabilities. It provides the company’s management with advanced managerial tools to promote professional excellence, and to recruit and retain quality employees through competitive and role-dependent salary levels. The agreement strengthens organizational certainty and stability, and allows us to continue to fulfill our national responsibility for managing Israel‘s electricity sector – in routine and in emergencies.”
Acting Chairman of the Histadrut, Roi Yaakov: “The Histadrut is working with all its might and determination to strengthen the position of employees in all sectors of the economy – and especially in those areas of national and strategic importance. The agreement at Noga is truly good news: it significantly improves employees’ conditions and ensures long-term employment stability, and also strengthens the company’s ability to attract and retain experts in the fields of engineering and electricity. This is exactly what is needed to maintain a reliable and strong electricity sector – in routine and in emergencies. The Histadrut will continue to work to improve working conditions and promote moves and reforms that will benefit not only the employees – but the entire Israeli economy and public.”
Adam Blumenberg, Vice President of Economics and Policy at the Histadrut and CEO of the Professional Unions Division: “This is another significant step in the implementation of the reform in the electricity sector. The comprehensive move we have made to update salary conditions provides employees with certainty and transparency, and places them at the forefront with the most competitive conditions in the market. The ability to recruit and retain talent and experts is critical to ensuring optimal service in the face of the national challenges of the Israeli energy sector. I congratulate the negotiation teams and Noga’s management on their professional and substantive cooperation that led to the desired outcome.”
Shiki Fisher, CEO of Noga: “Noga welcomes the signing of the new collective agreement and sees it as a significant and historic milestone in the company’s development. This is an agreement that strengthens Noga as a central national professional body and establishes its ability to continue managing the State of Israel‘s electricity system at the highest level.
The agreement updates and aligns Noga employees’ employment and salary standards with the heavy responsibility placed upon them and the growing complexity of the energy sector. It creates employment certainty, organizational peace, and a stable human infrastructure that will enable the company to cope with future challenges.
Beyond the organizational aspect, this is an agreement of national importance. Strengthening employees and strengthening Noga are necessary conditions for maintaining the State of Israel‘s energy security and ensuring a continuous, reliable, and resilient electricity supply in both routine and emergency situations.”
As mentioned, Noga is an independent government company established as part of the electricity sector reform. Since 2021, it has fully managed the system’s operation, electricity trade, planning, and development. In emergencies, Noga serves as the national power management authority. The company employs approximately 500 employees and works to ensure a regular, reliable, and quality electricity supply for all consumers in Israel. Most of the employees, who are engineers and academics, are employed at three of the company’s sites in Haifa, as well as in Herzliya and Ramat HaSharon.