"We are prepared for a world war", said Histadrut (General Federation of Labor in Israel) Negev district chairman Meir Babayof, referring to the proposed acquisition of Makhteshim Agan Industries Ltd. (TASE: MAIN) by Chinese firm ChemChina.
Babayof added, "The collective agreement in the company sets a requirement to consult in any case of transfer of ownership, and we see very severely the fact that up until now no one found it proper to speak with us or with the workers' committee."
Babayof said that if, within 48 hours, Makhteshim management does not set a special meeting to explain to committee representatives all the relevant details, the Histadrut will call a labor dispute especially quickly, via telephone.
"We know what the salary differences are between workers in Israel and those in China, and our great concern is that the acquiring company will move production to China, and a thousand workers in Israel will be left without a job. I say to Makhteshim's management, and I also say to Mr. Nochi Dankner, we will strike at the production facilities without hesitation."
At this time, an urgent letter is set to go out signed by lawyers and Haim Shaib, the Ashdod district chairman for the Histadrut, to Makhteshim chairman Avraham Bigger and CEO Erez Vigodman. Shaib is also responsible for Makhteshim Chemicals Ltd. workers at the plant in Ashdod. Employees will demand from management a special collective agreement that will anchor the workers' terms of employment in any case of transfer of ownership, and it is believed that they will demand a special safety net that will guarantee that production does not move to a foreign country for a longer period of time. Workers are also expected to demand special bonuses in any transaction.
Shares in Makhteshim rose 26.8% today.
Published by Globes [online], Israel business news - www.globes-online.com - on October 11, 2010
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