Following difficult discussions in recent weeks between the Histadrut (General Federation of Labor in Israel) and Teva Pharmaceutical Industries Ltd.'s (NYSE: TEVA; TASE: TEVA) management and workers' committee, understandings have been reached ensuring the continued activity of Teva's plant in the Neot Hovav industrial zone. As part of the understandings reached by the parties, Teva reduced the number of employees it will lay off by 35%, and has promised better severance terms for the dismissed employees. However, there is still no agreement regarding the planned layoffs at Teva's Kfar Saba plant.
The number of layoffs will be reduced from 175 to 110, and a plan and key for them have been agreed. Of the 110 layoffs, 10 will be entitled to early retirement, nearly 30 will be included in voluntary severance with 300-500% compensation, and the other 75 will receive enlarged severance of up to 500%.
All of the laid off employees will be entitled to a two-six month adjustment period, and will receive employment help and counseling from the company's management.
Another part of the agreements concern the time when the measure will become effective. According to the agreement reached, the layoffs will not take place until after the High Holy days - in November at the earliest.
The Histadrut's negotiators were Histadrut Negev District chairman Meir Babioff and union secretary general Yakir Oknin and Teva Tech workers' committee chairman Kamal Aldenfiri. Babioff said, "Throughout the difficult process that took place between the parties, we left no stone unturned in an effort to not only reduce the extents of the layoffs as much as possible, but also to make sure that the employees forced to terminate their work would be entitled to appropriate severance terms. The Histadrut will continue to keep close track of both the employees who are leaving and those who remain, both before the process is completed and afterwards."
Aldenfiri added, "The decisions emerged from real cooperation with and attentiveness to the workers' representatives. This is further evidence that despite the difficulties and the painful price, we are all closing ranks in order to save the workplace, reduce the layoffs to a minimum, and make sure that in every case in which a worker terminates his employment at the company, his dignity will be respected and his economic safety net will be guaranteed."
Teva: The severance terms are among the best in Israel
Teva said in response, "As the company has emphasized in recent weeks, the reorganization that Teva is implementing in Israel has but one aim - to safeguard the future of the company's sites in Israel and create a long-term employment horizon for its employees.
"Following many long discussions, thanks to a real open and transparent dialogue with the representatives of the workers at the Teva Tech site and a demonstration of responsibility and commitment to all the workers, the parties have succeeded in bridging the gaps and reaching agreement, among other things concerning the extent and timing of this necessary measure.
"The number of workers whose continued employment is under consideration was reduced to 110, not 175, as originally reported. With the beginning of the process of consultation, the company was able to find employment solutions for dozens of employees with the abilities and qualifications needed in order to change locations, while giving preference to workers coming from a difficult social background.
"Workers whose employment is being terminated will receive a packages and terms among the best in Israel. In addition, they will be granted personal help, including advice during the process of terminating their work, workshops, and professional training, as well as a connection with placement services that will help them find suitable alternatives. In any case, the employees' work at the company will be terminated only after the holidays.
"Unfortunately, despite our many attempts in recent weeks to reach agreement with the workers' committee at the Kfar Saba site, we are unable at this stage to report similar progress there."
Published by Globes [online], Israel Business News - www.globes-online.com - on August 23, 2017
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