SAP labor dispute escalates as workers halt system failure response
Employees launch sanctions after management moves to cancel collective agreement.
The labor dispute between employees of the software company SAP and its management has escalated, with workers launching organizational sanctions. As part of the initial measures, employees will no longer address system failures in certain parts of the company’s software.
The workers’ union said, “Starting today, failures in certain systems will not be handled, which is expected to cause disruptions and delays for many of the company’s customers. This is the first step in a series of organizational sanctions, which are expected to expand and intensify in the near future.”
The dispute stems from management’s decision, taken about two months ago, to cancel the collective agreement. In announcing the move, management wrote: “After a thorough review of the gaps that remain in negotiations with the workers’ union, we concluded that they could not be bridged within the required timeframe. As a result, we have decided not to proceed with the voluntary retirement plan. At the same time, the company has begun a formal process to terminate the existing collective agreements with the workers’ union, in accordance with the law and subject to a 60-day notice period as stipulated in the agreement.”
Approximately three weeks ago, the Histadrut (national trade union center) declared a labor dispute at the company for the first time. During this period, the parties held intensive negotiations but failed to reach an agreement, largely due to management’s refusal to withdraw its decision to cancel the existing contract.
Gad Ravid, chairman of the workers’ union, said: “This is another step in our struggle. We will not allow unilateral harm to Israeli workers, and we will not accept a reality in which rights achieved through years of effort are erased at the click of a button. If management does not change course immediately, we will continue to escalate our actions until the company is shut down.”
SAP responded: “SAP will continue to provide its customers with an excellent professional service. The current collective agreement, signed in 2017, was designed for a different era and does not reflect today’s needs. We have therefore proposed a new agreement adapted to the AI era and the current realities of the industry. In Israel, as in other locations where SAP operates, this requires a framework that enables agility and flexibility. However, these measures, already adopted in SAP centers worldwide, have not yet been implemented in Israel.
“We respect the workers’ union’s legitimate right to take industrial action. However, we are disappointed by this decision, which we believe does not serve the interests of employees or advance negotiations. Our employees deserve a resolution at the negotiating table. SAP will continue to negotiate in good faith, with the clear goal of reaching a new collective agreement that reflects the important role of the Israeli team.”
