Employees at Osem Investments Ltd.'s (controlled by Nestle SA (SWX:NESN)) (TASE: OSEM) Nestle ice cream factory in Kiryat Malachi today declared a work dispute. The dispute, which will entitle them to strike in 14 days-time, is the opening shot in a protest campaign against Osem's plan to move the factory to Arad.
Workers committee chairman Moshe Machlouf said that the employees had heard about the planned move in the media and are determined to see the decision cancelled. He said, "Today we received the news that the government has given Osem-Nestle a NIS 46 million grant. Osem is rich enough and does not deserve more grants. Let them develop our region and not solve Arad's problems with NIS 46 million. You don't treat a cancer patient with Acamol. The Finance Minister spoke about Zionism. Dan Propper (Osem chairman) spoke about Zionism. Apparently Zionism is bought with money and people with families are sold for money."
The work dispute has been called after Finance Minister Yair Lapid agreed with Osem-Nestle over the weekend to help them move their ice cream factory to Arad. As part of the agreement, the government will grant Osem, NIS 46 million - 25% of the required investment.
Osem has said that employees not wanting to move to Arad will be taken in by other factories in the group in the region.
Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2014
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