Haifa Chemicals Ltd. today announced that has put 800 of its employees on indefinite leave because of the ongoing strike at Israel Chemicals Ltd.'s (TASE: ICL) Dead Sea Works units, which has resulted in a severe shortage of potash that Haifa Chemicals uses in its own production.
Haifa Chemicals' management notified the workers' committee of the decision, and promised that the employees will continue to receive their basic salaries, as set out in the collective labor contract.
The strike at Dead Sea Works has lasted a month. Employees are demanding pay hikes. The employees have completely shut down potash production in their dispute with Israel Chemicals' management. As a consequence, production at Haifa Chemicals, which is wholly dependent on the Dead Sea Works unit of Israel Chemicals for its potash, was disrupted several weeks ago as Israel Chemicals' inventory of potash ran out.
Haifa Chemicals produces fertilizers, which are marketed worldwide. The company uses 360,000 tons of potash a year, all of which is provided by Dead Sea Works, which has an exclusive franchise to quarry the ore.
Published by Globes [online], Israel business news - www.globes-online.com - on February 2, 2011
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