Tnuva's new efficiency program, to be signed on Monday, will involve firing 300 workers who are collectively earning 1,000 million NIS. The agreement also includes a 7.5% raise for all Tnuva workers, as well as additional bonuses for the entire period of the agreement.
Tnuva is Israel's largest dairy producer. In 2014, Tnuva was sold to a Chinese company.
The efficiency program "will be mostly based on offers to retire early with above-average conditions." If not enough workers decide to retire early, the decision of which workers to lay off will be in the hands of Tnuva's management and the Maof Union.
Tnuva CEO Eyal Malis said the agreement "shows Tnuva's feeling of responsibility towards its workers, and of the workers towards the company. Tnuva is working to face the coming years' challenges from a point of strength. Together with the workers, we will continue working for the good of the Israeli consumer."
Workers' Committee Chairman Ahiav Simchi said, "Tnuva's workers are dedicated. They work day and night to help the company succeed and stay stable. This agreement shows Tnuva's appreciation to the workers' dedication, and recognizes their contribution to the company's success."
The decision to fire some workers was made in 2016, and it included a quarter of the company's management, as well.