On Thursday, the Histadrut (General Federation of Labor in Israel) approved a labor dispute at Israel Chemicals Ltd. (TASE: ICL) unit Dead Sea Works. With the announcement, Dead Sea Works joins Israel Chemicals' other units, where declared labor disputes have been declared against the company's streamlining measures.
To date, Israel Chemicals has announced the layoffs of 127 employees at its Amfert Rotem Negev unit, but the Histadrut fears a wide round of firings. "The main points of the plan talk about radical changes in the plants' workforces, shifts, targets, etc. this raises concerns about mass layoffs at Israel Chemicals' plants in southern Israel," says the Histadrut.
Histadrut Negev District chairman Meir Babioff says, "Every blow against Israel Chemicals' employees is a blow against the Negev. Out of concern for the future of the Negev, we must ensure that no mass layoffs occur at these plants, especially without cooperation of the workers committees and union representatives at the plants. If management decided to implement the plan as is, without the committees and the Histadrut a party to the decisions and without their cooperation, we will give them the hardest fight they have ever seen. We will unite all of Israel Chemicals' workers committees, all the workers committees in the south, and will launch a national campaign on this matter."
Dead Sea Works workers committee chairman Armand Lankri said, "The plan talks about rebuilding all of Israel Chemicals' plants to make the company leaner in order to make it easier to move it abroad or to sell it. Just as we fought against the sale of the company to Potash Corporation of Saskatchewan Inc. (NYSE; TSX: POT) several months ago, we will fight against the management's hidden agenda."
Israel Chemicals said in response, "Israel Chemicals - like all fertilizer companies worldwide - has coped over the past year with a sharp fall in fertilizer prices on global markets, and this requires necessary adjustments in the company's expenditure structure - as required by any company in a similar position."
"Israel Chemicals is also coping with the major harm caused by a range of decisions taken by the Israeli government - that have made the company's business operations conditions in Israel more difficult - such as the company's expenses from the Law for the Encouragement of Capital Investment, doubling royalties, and the salt harvesting project. This combination of domestic and global circumstances requires the company's management to thoroughly examine expenditure to meet the tough competition in the global market and ensure the livelihood of thousands of Negev households. There is no reason to declare a dispute because no unilateral steps have been taken by management, which is strict in upholding all clauses of the labor agreement. Management expects the workers committee to show responsibility and full cooperate in this complicated period that we are going through."
Published by Globes [online], Israel business news - www.globes-online.com - on January 12, 2014
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