ROSH HA'AYIN, Israel--(EON: Enhanced Online News)--Partner Communications Company Ltd. ("Partner" or "the Company") (NASDAQ and TASE: PTNR), a leading Israeli communications operator, announced today that it has reached understandings with its employees' representatives and the Histadrut New General Labor Organization (the "Parties") regarding a collective employment agreement.
“Item 6 DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES - 6D. Employees”
The Company has signed a collective employment agreement with the employees' representatives and the Histadrut. The agreement includes an economic chapter that is valid for the years 2017 and 2018.
The cost of the 2017 economic chapter is estimated at approximately NIS 7 million in addition to the implementation of all of the sections of the 2016 economic chapter (which is estimated at approximately NIS 10 million). The total estimated amount of the expense in 2017, for the collective employment agreement, is therefore expected to be higher than 2016 by approximately NIS 17 million.
The cost of the 2018 economic chapter is estimated at approximately NIS 23 million, in addition to the estimated expense for the Company for 2017 for the collective employment agreement.
The collective employment agreement also refers to the participation of employees in the Company's profits and regulates the eligibility conditions for receipt of these awards for the years 2017-2018.
In addition to the collective employment agreement and in accordance with the understandings between the Parties, the Company undertakes to reduce approximately 90 positions, mainly as part of the retirement plan. As a result, the Company estimates that a onetime expense will be recorded in the fourth quarter of 2016 in the amount of approximately NIS 12 million. The final cost of the retirement plan will be determined in accordance with the number of employees who will actually retire as well as the composition of these employees.
For further information please see the Company's press releases and
immediate reports (on Form 6-K) dated March 14, 2016 at:
http://www.sec.gov/Archives/edgar/data/1096691/000117891316004669/zk1618199.htm15-002142-index.htm or http://maya.tase.co.il/reports/details/1024721
and July 19, 2015 at:
http://www.sec.gov/Archives/edgar/data/1096691/000117891315002307/0001178913-15- 002307-index.htm or http://maya.tase.co.il/reports/details/980516 and the Company's Annual Report on Form 20-F for the year ended December 31, 2015 – "Item 3. Key Information - 3D.2e - The unionization of our employees might prevent us from carrying out necessary organizational and personnel changes, result in increased costs or disruption to our operations, and reduce management’s flexibility to adapt operations to market conditions, and our operating expenses may be increased, all of which could adversely impact our results" and "Item 6 DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES - 6D. Employees".
This press release includes forward-looking statements, as this term is defined in Section 27A of the US Securities Act of 1933, as amended, Section 21E of the US Securities Exchange Act of 1934, as amended, and the safe-harbor provisions of the US Private Securities Litigation Reform Act of 1995. Words such as “will”, "believe", "anticipate", "expect", "intend", "strive", "seek", "plan", "could", "may", "foresee", "target", "objective", "goal", declensions thereof and similar expressions typically convey forward-looking statements, but these words are not the only words that convey these statements. We have based these forward-looking statements on our current knowledge and our present beliefs and expectations regarding possible future events. These forward-looking statements are subject to risks, uncertainties and assumptions, including potential difficulties which may arise from the signing of the collective employment agreement and the retirement plan and their financial impact on the Company.
About Partner Communications
Partner Communications Company Ltd. is a leading Israeli provider of telecommunications services (cellular, fixed-line telephony and internet services) under the "Partner" brand and the "012 Smile" brand. Partner’s ADSs are quoted on the NASDAQ Global Select Market™ and its shares are traded on the Tel Aviv Stock Exchange (NASDAQ and TASE: PTNR).
For more information about Partner see: http://www.partner.co.il/en/Investors-Relations/lobby