Israel Chemicals (TASE: ICL: NYSE: ICL) management, its workers committee and the Histadrut (General Federation of Labor in Israel) today signed an agreement to end the three month-old strike at the company. The agreement includes 40 layoffs and 100 employees going on early retirement, Israeli website "Walla" reports.
Under the new agreement, 19 employees at each Israel Chemical plant - Bromine Compounds and Dead Sea Works - will receive another chance to improve their work in order to avoid being fired. If management is still dissatisfied with their work, it will have the right to fire them, but the workers committee will have veto power for two workers from each plant. If the layoffs go into effect before the end of the year, the workers fired will receive enlarged severance pay amounting to hundreds of thousands of shekels.
Another clause concerns the number of workers forced to retire. Under the agreement, 50 workers from each plan till retire soon, and will receive increased severance pay and pensions. Another disputed matter concerns moving workers within the company, with management demanding the right to do this without interference from the workers committee. The parties have reached an understanding that the changes will take place only by consent, and will be conducted solely for cost-cutting purposes in order to avoid additional layoffs. Furthermore, Israel Chemicals management promised in the agreement that there will be no further streamlining for the next three years.
"We hope to sing the agreement by next morning," Dead Sea Works workers committee chairman Armand Lankri said yesterday. According to Lankri, only the final details remain to be solved. "There is agreement on most of the details and the lawyers are now formulating the agreement," he said. "Unless there are last-minute surprises, the strike will end today."
Published by Globes [online], Israel business news - www.globes-online.com - on May 28, 2015
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