Fearing replacement by AI systems: AIG Israel employees declare a labor dispute
The AIG Israel workers' committee has declared a labor dispute citing disagreements over a collective agreement and concerns that AI implementation will lead to job cuts.
The workers' committee of the insurance company AIG Israel declared a labor dispute today, Sunday, following disagreements with the company's management. According to the committee, the dispute concerns the renewal of the company's collective agreement after nearly a year of negotiations.
However, the tension stems from more than just the contract renewal. The committee claims that management, led by CEO Yifat Reiter, is developing a pilot project in which AI tools will simulate the work of employees, potentially leading to position eliminations and harming job stability. The committee demands that AI implementation be formally included in the collective agreement.
In a message to employees, the committee stated:
"We did everything we could to avoid this moment, but unfortunately, there was no other choice. For a very long time, we tried to reach agreements, but the gap between what management is willing to offer and a collective agreement that would grant AIG employees what is customary in the economy is very large."
With the declaration of the dispute, a 15-day cooling-off period has begun. If no significant progress is made, the committee and the Histadrut may initiate organizational measures, including a strike.
AIG Israel employed 852 workers in 2025, compared to 838 the previous year. Most of the staff, 574 employees, work in the service and sales center, where positions are most likely to be affected by AI.
AIG management responded:
"We regret the decision of the workers' committee and the Histadrut to declare a labor dispute while serious negotiations are underway, in which the company presented worthy proposals regarding salary and employment conditions. AIG believes in innovation and AI technologies as part of its business development. The implementation of these tools will be done responsibly and thoughtfully, in dialogue with employee representatives in accordance with the law. The company will continue to work toward a balanced agreement for the benefit of the employees and the company."
