Partner Communications Company Ltd. (“Partner” or “the Company”) (NASDAQ and TASE: PTNR), a leading Israeli communications operator, announced today that it has signed a new collective employment agreement with the employees’ representatives and the Histadrut New General Labor Organization (the “Parties“) for a period of three years, that includes an economic chapter, for the years 2019-2021 (“the Collective Employment Agreement“).
The Collective Employment Agreement grants Partner employees among other things: an immediate salary increase for employees with a seniority of 1.5 years or more; an additional salary increase contingent on the Company’s performance and based on the rate of increase in EBITDA in the first half of 2019 compared to the parallel period in 2018; participation in the Company’s profits and the terms of eligibility for these grants in the years 2019-2021. In addition, the parties agreed to negotiate at a later time a salary increase mechanism for the years 2020 and 2021.
The estimated additional cost of this Collective Employment Agreement for the years 2019-2021 is NIS 11 million not including salary increases for the years 2020-2021 (including the salary increase effect of 2019 for the entire agreement term).
For further information please see the Company’s Annual Report on Form 20-F for the year ended December 31, 2017 “ “Item 3. Key Information – 3D.2h – The unionization of our employees has negatively affected and may continue to affect our financial results” and “Item 6 DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES – 6D. Employees”.
Forward-Looking Statements 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 its financial impact on the Company.
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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. Partners 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
Chief Financial Officer
Tel: +972 (54) 781
Liat Glazer Shaft
Head of Investor Relations & Corporate
Tel: +972 (54) 781 5051
E-mail: [email protected]