Israel Chemicals (TASE: ICL: NYSE: ICL), a subsidiary of Idan Ofer-controlled Israel Corporation (TASE: ILCO), today informed the National Labor Court that it was repudiating all the agreements reached on March 13 at the Court pertaining to the suspension of layoffs at the company. The suspension was aimed at a resumption of dialogue with the workers.
As part of its cost-cutting program, Israel Chemicals is offering "voluntary" early retirement to 160 workers at its subsidiaries, Dead Sea Works and Bromine Compounds. 80 workers over 55 at Bromine Compounds were offered early retirement, compensation, and handsome retirement bonuses, while 60 employees were served with dismissal notices. 80 workers at Dead Sea Works were offered early retirement, and 55 were served with dismissal notices, making a total of 115 layoffs.
100 of the 160 workers offered early retirement have already accepted the offer and signed, subject to good compensation and bonuses. They are no longer company employees. The end of the suspension announced today by the company restores the situation to what it was before the March agreements with the Court; according to the company, it can now fire the 115 workers served with dismissal notices two days from now.
Israel Chemicals offered a compromise in the negotiations that were broken off in recent days, including lowering the number of layoffs from 115 to 60, but the Histadrut (General Federation of Labor in Israel) said it would not agree to even one worker being laid off.
The Histadrut (General Federation of Labor in Israel) yesterday told the Labor Court that the negotiations in recent weeks between Israel Chemicals management, the Histradrut, and the workers representatives had reached a deadlock. Bromine Compounds workers committee chairman Avner Ben-Senior said, "ICL management is insisting on layoffs, and we're opposed to this entire proceeding."
The workers committee brought the dispute back to the Court, which in mid-March had directed the parties to negotiate in an effort to solve the crisis. According to Ben-Senior, "It's time to shake things up, and in the coming days, we'll renew our protests, in view of the layoffs plan led by management."
The strike at Israel Chemicals subsidiaries Bromine Compounds and Dead Sea Works has been going on since February.
Published by Globes [online], Israel business news - www.globes-online.com - on April 15, 2015
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