ECI employees strike to protest 63 layoffs

ECI strikers Photo: Nati Yefet

ECI workers committee head: This is a struggle about cuts in Israeli high-tech, which is moving to India and China.

About 850 employees of Israeli telecommunications equipment provider ECI Telecom went on strike this morning after 63 employees received dismissal letters yesterday. All development work as well as customer service support has been halted both in Israel and overseas. Employees have blocked the entrances to all the company's offices and only several dozen employees were able to go to work this morning. There were clashes this morning between security staff and the strikers near the entrance to the company’s premises.

Histadrut cellular, Internet and high-tech association chairman Yaki Halutzi said, "It is the company's management that has brought us to this woeful situation and it is in their hands to end the crisis. I call on the controlling shareholders Shaul Shani to take responsibility and stop working against us."

ECI workers committee chairman Ofir Levy added, "Our struggle is about much more than 63 or 100 employees. It is the struggle for Israeli high-tech, which is making cuts and moving to India and China."

ECI's management insists it has no choice but to make layoffs because of the company's financial situation. Estimates are that the company has a negative cash flow of $20 million although this may be because Shaul Shani is trying to recoup his investments in years that the company made a loss.

Published by Globes [online], Israel business news - www.globes-online.com - on January 9, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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ECI strikers Photo: Nati Yefet
ECI strikers Photo: Nati Yefet
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