The Histadrut labor federation signed for the first time a collective agreement with a restaurant chain on Tuesday.

The union signed a deal with "The Coffee Bean" chain of 14 restaurants across Israel handing over 10 percent of the company's annual profits to its employees and other benefits for those who have worked for at least a year.

The agreement came after a Tel Aviv Labor Court ruling that it was unlawful for the company to fire Alon Lee-Green for trying to form a worker's union.