The Israel Airports Authority (IAA) employed workers according to unapproved standards, and the Tel Aviv Municipality exceeded the number of overtime hours in the “Alta” for the fifth year in a row. According to the Salary Irregularities Report submitted by the Supervisor of Wages, the enforcement activities helped save NIS 275 million in the past year.

The handling of wage excesses in the public sector between 2016-2018 saved the state’s coffers NIS 1.9 billion, according to the report released on Tuesday by the on public sector wage irregularities submitted by Kobi Bar-Natan, the Finance Ministry’s official responsible for monitoring wages. The report was submitted to Knesset Speaker Yuli Edelstein when released. The report reviews the extent of deviations in the public sector in the budgeted bodies that are supported by the government for 2017, as well as the activities of the Enforcement & Wage Investigations Unit for 2018.

The reports of the budgeted and supported bodies in their previous year show that the total cost of employment in the budgeted and supported bodies stood at NIS 75 billion in 2018. The total savings from the enforcement unit’s activity in 2018 is NIS 275 million. Of this sum, NIS 37.3 million was returned to the coffers of the bodies in which the enforcement was carried out, and NIS 238 was actual savings.

In 2017 ostensibly deviations were found in 93 budgeted entities, which constitute approximately 12% of all bodies. The leading bodies are local authorities, followed by descending order: government corporations, supported bodies, corporations, municipal companies and religious councils. The ostensible employees are “position holders” i.e. employees who perform key functions.

In the Tel Aviv-Jaffa Municipality, alleged salary irregularities were discovered for five consecutive years. In addition, of the 93 bodies in which irregularities were discovered in 2017, in 29 bodies there were deviations also in 2016, and in five of them, apparent wage irregularities were discovered for three consecutive years. Including the Carmel Coast Regional Council, the Taibeh Municipality, the Zemer Council, the Airports Authority and the Tel Aviv Municipality.

A significant portion of the alleged salary overruns (29%) among the officials were raised by the Airports Authority as a result of transactions which are unapproved according to standards. A significant portion – 38% – of the apparent salary increases among high-wage earners rose in the “Alta Electronic Industries” due to an unreasonable increase in the overtime hours paid by employees compared to last year.

As part of the units’ activity, enforcement is carried out based on warnings and information transmitted from various sources. Accordingly, the sums that were returned to these bodies – that is, the amounts that an employee received in the past illegally and was required to pay back, as well as future savings resulting from amortization. In other words, the amounts that an employee received in the past are illegal and therefore, required to be returned as well as future savings created by the reduction of future payments.

Deviations in salary include:
Among the outstanding irregularities in the report are the legal advisor of the Israel Airports Authority – NIS 79,512 (11% deviation); senior deputy director of orthopedic department in Clalit Health Services with NIS 45,634 (47%); head of the Electronic Division at the Airports Authority with NIS 53,668 (35.96%), and deputy director of the Israel Railways Division with NIS 38,580 (21%), the Dean of Science at the Technion, with NIS 63,578 (50%), the Director of the Banking Supervision Department at the Bank of Israel with NIS 56,801 (11.52% ), Amidar’s legal counsel with NIS 49,421 (35.96%) and deputy director of the Israel Railways Division with NIS 38,580 (21%).

Hebrew University – Jerusalem
In accordance with the agreements between the parties, the compensation of the pensioners of the administrative staff insured by the budgetary pension will be reduced by an excess of NIS 17.5 million per year. In addition, as a result of the agreement, the university funds were saved a lump sum of about NIS 23 million. The future saving is NIS 153 million.

National Firefighting Authority
Senior firefighters filed claims in the amount of hundreds of thousands of shekels for wage differences and benefits. In the end, they themselves were required to repay the state for salary irregularities they had received over the years. The total amount of money saved to the state stands at NIS 506,000, and the total amount of money returned to the state coffers is more than NIS 1.25 million.

Be’er Sheva
43 employees of the Be’er Sheva municipality conducted legal proceedings, demanding NIS 7.34 million from the state. 38 of them signed a settlement agreement in which they were paid NIS 340,000. The intervention of the Supervisor of Wages in this process saved more than NIS 6 million. Four plaintiffs continue the legal proceedings in the court and one plaintiff has yet to decide on the continuation of the claim.

In addition, as part of a collective hearing held with the municipality, irregular salary agreements were arranged with the salaries of about 25 municipal employees. The monthly salary of the workers was reduced by NIS 42,334 in total. In addition, the workers were required to pay NIS 204,966 together. The annual savings as a result of the reduction in the monthly salary is estimated at NIS 632,732, while the future saving is estimated at NIS 1 billion. Additional salary irregularities of municipal employees will be settled in 2019.

On another issue, two municipal employees received their salaries according to a rating different from the rating approved by the Ministry of the Interior. As part of the series in agreement, the monthly salary of the workers was reduced by NIS 2,746, and they were required to pay a combined NIS 53,075. The annual saving is estimated at NIS 45,227, while the future saving is estimated at NIS 1.5 million.

Rishon L’Tzion
In a review conducted by the municipality’s wages supervisor, it was found that a department manager at the municipality received an entitlement to rank in a different manner. As part of the agreement, it was decided that the employee would be demoted to half a rank, and as a result, her monthly salary would be reduced by NIS 350 a month. It was also decided that the employee would return NIS 6,900 to the council coffers. At the same time a decision was made by the Supervisor of Wages regarding a woman who sued the municipality. As part of the decision, the worker’s monthly salary was reduced by an additional NIS 3,000, and she was required to pay NIS 284,000 to the municipal coffers.

Israel Electric Company
As part of a wage agreement signed with IEC employees in January 2017, it was agreed that the retirees and survivors would return NIS 36,955. The estimated future savings are NIS 427,019.

Poultry Industry Council
The enforcement and auditing unit discovered irregularities in the salaries of the council’s employees. After the Commissioner of Wages in 2018 approved a collective agreement signed between the Council and the Histadrut, the salary conditions of the employees of the Council were settled, and the exceptions raised in the audit report resulted in an estimated annual saving of NIS 1.1 million, and future savings estimated at more than NIS 42 million. The employees were required to pay individual consideration of NIS 70,087.

Education Department Heads
Within the framework of central agreements signed between the Union of Local Authorities and the Teachers Union regarding the salaries of education department heads, in many cases examined, it was found that the Teachers Union recommended to the authorities incorrect implementation of both the exceptions agreement and the wage agreement. In 2018, 11 managers of the education departments were dealt with, and NIS 140,000 was returned to the authorities’ funds in which they were employed. The annual saving resulting from the enforcement activity among department heads is estimated at NIS 200,000, while future saving is estimated at NIS 2,713,029.

Bnei Brak
Within the framework of the units’ activities, wage hikes were found among two municipal employees. As part of the agreement, the monthly salary of the employees was reduced by NIS 2,378 and they were required to pay NIS 29,834 together. The annual saving is estimated at NIS 40,170, while the future saving is estimated at NIS 1.3 million.

Herzliya
A department manager in the municipality filed a request for promotion. As a result, the terms of his employment were examined, and irregularities were discovered in his salary. As part of the series, in agreement with the employee, it was decided that he would return NIS 36,600 to the municipal coffers and his salary would be reduced by NIS 917 a month. The annual savings resulting from the arrangement are estimated at NIS 13,177.

Fire Department
From the beginning of the investigation unit’s activity in 2009 until 2018, 142 investigation files were opened in all the budgeted and supported bodies. In about half of the investigation files in 2013-2018, a sentence was given after the defendants were convicted. In the investigation files that were transferred to the prosecution, a variety of penalties were imposed on those who approved the irregularities in salaries that belong to the senior echelon of the bodies.

Disciplinary Tribunal for Judgment – 38 Rulings
Of the 38 verdicts received by the Disciplinary Tribunal for Judgment, one-third were dismissed from employment or temporary disqualification from the Civil Service or from the body in which they worked. An additional one-third was partially or fully paid, and the rank of accused was lowered or frozen.

For example, at Netivei Yisrael, an investigation was launched following the payment of bonuses to senior employees of the company without the approval of the Government Companies Authority. In Hadassah Hospital, the granting of payment of salaries to a senior department manager was investigated despite explicit instructions from the representatives of the Supervisor of Wages. The investigation has not yet ended.

Many other investigations took place or are still ongoing.

(YWN Israel Desk – Jerusalem)