Israel Electric Corporation (IEC) (TASE: ELEC.B22) today notified the Tel Aviv Stock Exchange (TASE) that it had signed an agreement with the company's workers committee, headed by Miki Zarfati, ending the workers' recent sanctions, which have delayed the company's reform, which will now start in February.
Under the agreement, 400 employees in the 59-65 age bracket will be granted early retirement, 190 temporary workers will be given tenure at the company in 2015, the positions vacated by the workers being voluntarily retired will not be filled, and economizing measures designed to detract from the workers' rights will be canceled.
IEC chairman Yiftah Ron-Tal said, "The agreement was signed because the board of directors, management, and workers' organization are behaving responsibly, and realize the company's need for cutting costs. At the same time, I call on the government now: the agreement is not a substitute for reform in the electricity sector; it only makes reform more necessary. It is essential that the energy sector be put in order and a reliable horizon be provided for the company that will open new possibilities for it."
IEC CEO Eli Glickman said, "Unfortunately, the prolonged negotiations have had a negative impact on service for our 2.6 million customers. The company management and workers committee have decided to cooperation on a cost cutting plan, because we all realize its importance for the company. We and the workers understand that without economizing, IEC will not be able to resume its growth."
Published by Globes [online], Israel business news - www.globes-online.com - on January 14, 2015
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