The workers committee at Israel Chemicals Ltd. (TASE: ICL) unit Dead Sea Bromine Compounds Ltd. in the Negev is boycotting the company's Rosh Hashana toast because of plans to lay off 300 employees. The company announced at the end of August that it plans to streamline its Bromine operations and close its magnesium plant in Sdom.
Israel Chemicals claims the streamlining is due in part to the recommendations for higher royalties by the Sheshinski Committee. The company plans shutting the magnesium plant in January 2017 - the date when the Sheshinski Committee recommendations are to take effect.
Bromine Compounds workers’ committee chairman Avner Ben Senior said, “The company’s management has proven again that it is not interested in its workers, and has chosen the occasion of the eve of the Jewish New Year to announce its intention to fire workers. We intend to intensify the struggle. The company’s management - which collected millions of shekels in dividends a few weeks ago - paints a false picture, in which it is losing money, and therefore needs to lay off 300 workers. Israel Chemicals management is robbing the company."
According to the bromine plant workers, Israel Chemicals intends to fire all the operators of the group in southern Israel - 1,200 workers. Israel Chemicals’ management has not confirmed this number. The company stated in recent days that steps have been taken towards opening negotiations with representatives from the bromine plant workers, following the decisions of the Israel Chemicals board at the end of August to streamline bromine operations. Then, they again quoted Israel Chemicals’ announcement to the Tel Aviv Stock Exchange (TASE), which stated that such a plan was necessary, in part because of the continued erosion of the profitability of bromine compounds, due to a decline in demand for flame retardants, slow growth in construction globally, falling prices, and the possibility of the adoption of the interim recommendations of the Sheshinski Committee, as they are legislated.
“Pursuant to this decision, the company's management held a meeting last week negotiating with employee representatives with the intention of reaching an agreed-upon streamlining program. In the meeting, it was decided continue on to serious, mutually respectful, which will continue after the Jewish holidays,” said Israel Chemicals management.”
Published by Globes [online], Israel business news - www.globes-online.com - on September 21, 2014
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