Hundreds of AIG employees to strike over wages, job security and AI plans
A year of negotiations between AIG management, the workers’ union and the Histadrut has ended without an agreement. Employees are also seeking guarantees over the company’s planned AI voice agent, which they fear could change their jobs and lead to staff reductions.
Hundreds of AIG insurance employees will go on strike starting today (Friday) after negotiations between management, the workers’ union and the Histadrut (National trade union center) collapsed. At the heart of the dispute are wages, employment conditions and the implementation of an AI-based voice agent that could affect staffing levels.
Negotiations held Thursday between company management, the workers’ union and the Histadrut ended without an agreement, following nearly a year of discussions. The strike will halt operations at the sales, customer service and claims call centers, as well as activities at the company’s headquarters.
The shutdown is expected to affect customers’ ability to receive human assistance and handle claims and policies through the company’s call centers. However, it has not yet been announced whether essential services will operate on a limited basis or whether the company’s digital services will continue to function as usual.
The strike follows nearly a year of negotiations over a new collective agreement that failed to produce an accord. About a month ago, the Histadrut and AIG’s workers’ union declared a labor dispute. According to the union, significant gaps remain between the parties over wages, employment conditions and job security.
Another point of contention is AIG’s plan to implement an AI-based voice agent designed to perform some of the tasks currently handled by customer service representatives. Employees fear that the technology will change the nature of their work and potentially lead to job cuts. They are demanding that the introduction of technological tools that could affect the workforce be regulated as part of the collective bargaining agreement.
On Wednesday, in a show of strength against management, the workers’ union organized a simultaneous walkout involving 150 employees. The workers left their stations and gathered in the center of the building for several hours, halting all work.
AIG is an insurance company specializing primarily in general insurance, particularly auto and home insurance. While the company is American-owned, its Israeli operation runs with relative independence.
AIG reported a total profit of NIS 113 million ($37M) in the first half of the year, compared with NIS 83 million ($27M) in the same period last year, an increase of 36%.
AIG said: “Unfortunately, the workers’ union continues to dig in its heels, preventing an agreement from being reached. Throughout the negotiations, including the meeting held today (Thursday), company management has put significant proposals on the table in an effort to reach a deal. Regrettably, once again, we have not seen a willingness on the other side to take the necessary steps to reach an agreement.
“The company’s employees play a central and vital role in its success; we deeply value their work and dedication and remain committed to them. We are determined to continue working toward a proper and fair agreement, and our door remains open for further negotiations.
“We hope the union will reconsider its stance and demonstrate a genuine willingness to reach an agreement. The company is committed to its customers and will make every effort to ensure that customer service is not compromised.”
