Kitan Textile Industries wants to take advantage of wage subsidies in priority areas.
Kitan Textile Industries Ltd. wants to move its work from factories it operates in Jordan to Upper Nazareth, where it will employ 100 immigrants and Israeli Arabs. Sources inform ''Globes'' that Kitan recently asked the Investment Promotion Center for aid under the employment track for this purpose.
The employment track, awarded by tenders in outlying and national development areas, provides a NIS 1,200 salary subsidy for each employee hired for five years. Although the employment track offers preferences for hiring minorities, Kitan will not be able obtain aid under the usual track, because it does not meet the threshold condition a commitment to a minimum wage cost per employee of NIS 3,750 a month.
Kitan and the Investment Center are continuing talks, in an effort to boost employment in sewing factories in the Galilee, following the success of Tefron Ltd.’s (NYSE: TFR) sewing factory in Hurfeish. Tefron’s plant operates a pilot employment aid program for three years, which will terminate at the end of 2005.
Published by Globes [online], Israel business news - www.globes.co.il - on August 16, 2005