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Histadrut Chairman Avi Nissenkorn, Director of Comverse's Israeli site Shmulik Haham, Chairman of the Internet, Cellular and Hi-Tech Workers Union in the Histadrut Yaki Haluzi, Chairman of the Comverse Employees' Committee Amir Briga, and representatives of Tech Mahindra in Israel signed on June 24 the first two collective agreements in the hi-tech industry, at the Histadrut headquarters in Tel Aviv. The agreements regulate the working conditions of Comverse employees in relation to the deal that was signed with the Indian company Tech Mahindra. The negotiations were accompanied on behalf of the employees by Shay Teken, Director of the Labour Relations Department and a partner at the Fischer-Behar law office.

It should be mentioned that approximately 750 employees of Comverse Israel organized in the Histadrut approximately three months ago. The company, which specializes in marketing billing systems and added-value services for the cellular industry, has approximately 350 customers in Israel and worldwide. Several months ago, the company signed a commercial agreement under which the digital services will be transferred to Tech Mahindra, which is expected to focus on the development operation of Comverse. Since signing the deal, intensive negotiations were conducted between the Histadrut and the employees' representative and Tech Mahindra management representatives and Comverse management regarding the absorption terms of the 270 employees who are expected to transfer as part of the deal.

The collective agreements that were signed concern both the group of employees that will transfer to Tech Mahindra and the group of employees that will continue their work at Comverse.

The important point in this agreement is fully preserving the wage conditions and the rights of Comverse employees who are being transferred to Tech Mahindra. Employees will be entitled to vacation days and to convalescence pay according to their seniority at Comverse, in addition the sick day quota will be fully transferred to their new workplace. In parallel to preserving their rights, a final payment will be made in full for the transferring employees, in its framework all the money accumulated for them in funds will be paid to them according to the Severance Pay Law.

The current agreement places special emphasis on the job security of the transferring employees, and anchors Comverse's commitment that no employee will lose their job during the first year after the transition, or until a comprehensive and full collective agreement is signed at Tech Mahindra.

All the transferring employees will receive a transfer grant at a rate of half a salary and an additional payment for the advance notice period. In addition, each employee who will complete one work year at Tech Mahindra will be entitled in the future also for a perseverance grant at a rate of a full salary.

More important news for the employees is increasing the social allocations both among the transferring employees and among employees remaining in Comverse. The rate of the various allocations, including pension, insurance and study fund, will be derived from now on from 100% of employees' wages, rather than from 80% as it was until now.

The employees remaining in Comverse will be entitled to an increase in the base allocations to a study fund in the wages that is beyond the tax ceiling. Each employee can choose whether to increase the allocations to the fund or receive an about 1.5% wage increase. In the period up to signing a comprehensive and full collective agreement, Comverse's management will not lay off employees as part of the streamlining processes, nor a reduction or structural change, unless it has first conducted negotiations with the employees' committee.

The signing of the collective agreement would allow, in practice, to execute the transition agreement of the deal, which will come into force from July 1, roughly one

month after the planned date. In parallel to regulating the working conditions of Comverse employees in relation to the deal with Tech Mahindra, Tech Mahindra management and Comverse management committed to enter immediate negotiations with the employees' committees with a common aspiration to reach a comprehensive and full collective agreement in the two companies within six months.

Histadrut Chairman, Avi Nissenkorn, said today: "The new agreements that we have signed are the first fruits of the wave of organizing in the hi-tech industry. This is further evidence that also in the industries that we are not used to seeing as part of the organized labor, the employees as well as the employers understand the benefits of collective labor relations. Regulating the working conditions and ensuring the job security of the employees are a crucial guarantee for the continuation of the company's business operation in a manner that is compatible with its plans. I congratulate the trade union, the employees' committee and the employees on the important achievement recorded today, and thank the management, headed by Shmulik Haham, for choosing to be a brave partner to the process".

Chairman of the Internet, Cellular and Hi-Tech Workers Union in the Histadrut, Yaki Haluzi, added: "Despite its young age, the Internet, Cellular and Hi-Tech Workers Union continues to play a leading role in changing the reality and in defending the rights of workers. After assuring the future of the employees at the stage of the deal's implementation, the goal that stands before us now is the formulation of a comprehensive and full collective agreement at Comverse and at Tech Mahindra, from a comprehensive view of the welfare of the employees and the company".

Chairman of the Comverse Employees' Committee, Amir Briga, said: "There are still many challenges ready for us but we can be very proud of what we succeeded in achieving today. The employees are a key part of Comverse's success and they deserve to be treated as befitting their contribution to the company. On behalf of all the employees' committee members, who continue to work day and night, I want to thank the employees who demonstrated determination and patience. I hope that the continuing dialogue between the parties will always be in a spirit of fairness and cooperation".