A few weeks ago the findings of the Ma’ala corporate responsibility index for the first half of 2008 were published. According to the findings Discount Bank, Bank Hapoalim, Cellcom and Partner are responsible corporations that safeguard human and environmental rights. Cross-referencing the findings of the Ma’ala Index with complaints received by Kav LaOved during the same period (first half of 2008), yield disappointing conclusions.

Studying and analyzing the thousands of petitions which reached Kav Laoved in first half of 2008 we found that those companies, which received the highest scores in the Index, were often mentioned in complaints by their direct workers as well as by subcontracted workers.

The most problematic of the companies granted a “gold” rating in the Ma’ala Index are cellular communication companies. According to the numerous complaints received by Kav LaOved during the first half of 2008 these companies practice illegal binding of low salaried workers – that is fining workers who leave their jobs before the termination of a set period of time.


Cellular communication corporations

Workers in Cellcom’s and Partner’s client service centers report that they have to work long hours (far longer than allowed by the Law of Work and Rest Hours) with a heavy workload and low salaries. Before they begin their work, they must sign a contract according to which they will be fined thousands of shekels, if they leave the job in under a year. Using this threat of fines the companies hold on to workers despite their low salaries, harsh working conditions, the almost unlimited long hours and heavy work loads. According to information we received during the past month, Partner outdid itself by not only fining workers who leave before a year has passed, but also contractually committing workers to pay a scandalous fine of 2,500 shekels if they are fired. Such fines are illegal, because, among other things, they reduce workers’ salaries below the minimum wage.

Here is C’s complaint: I worked for Orange for 11 months and one week. After a confrontation with a client and violation of company procedures, I was fired and now I have to pay 2,500 shekels. How does the law treat this subject? Must I pay for the fine even though the company fired me? Am I eligible for severance pay after 11 months of work?

These fines, which lower wages to below minimum, do not reflect on the company as committed to worker rights. On the contrary, they show that the company does not hesitate to break the law, an engage in a criminal offense.


Banks

Almost all complaints concerning banks, which were graded very high on the Ma’ala Index, came from workers employed via placement agencies and from sanitation and security worker employed via service contractors.

For instance, N.R., employed by the Hapoalim Bank through a contractor as a security guard, was suspended without a hearing in addition to having his salary revoked for a full week: “This morning the manager in charge notified me that the Security Officer has decided to suspend me for a week without a hearing. I asked the manager in charge to talk to the Security Officer requesting a hearing, but he told me that a hearing would be held after the week’s suspension. I am a student, and I cannot be unemployed for a week, I have to work.”

A further example was reported by A, who has worked for two years for Discount Bank via a placement agency: I do not receive what I am eligible for according to the law (at least as far as I know); things like: pension, overtime, welfare benefits, etc.

The bank workers employed via placement agencies are also greatly troubled by the possibility of massive dismissals due to the new law obligating the banks to hire placement agency workers directly after 9 months of work.

To their credit it should be mentioned that in 2008, as opposed to 2007, the Ma’ala Index referred to the problem of workers employed via contractors and placement agencies. Unfortunately, this did not make the index more reliable. According to the complaints Kav LaOved received and the information we have, the top ranking companies do not necessarily protect the rights of workers employed via contractors and placement agencies.

The facts that worker problems are taken into consideration, and that the awareness of worker rights are among the significant criteria regarding the Ma’ala Index, are praiseworthy. However, as long as the Index is based solely on reports from the companies to be graded themselves, it seems that the significance of the index is limited, and that its findings do not necessarily reflect the actual practice concerning worker rights.