On Monday, Tnuva Food Industries Ltd. workers committee chairman Ahiav Simhi carried out his threat, declaring a labor dispute over disagreements on the amount of remuneration the company will pay employees following the sale of the controlling interest to China's Bright Food Group at a company value of NIS 8.6 billion. Apax Partners will make a tax-free NIS 3.8 billion on the sale.
As part of the labor sanctions, no white cheeses were delivered from Tnuva's warehouses today, and the distribution of other products to supermarkets and other retailers were reduced to once a day.
"We'll slightly disrupt work. We'll load trucks by the book, rather than by usual practice," Simhi told "Globes". "Grocery stores have enough white cheese, but I assume that shortages will emerge in a day or two. We're talking about all types and all sizes of containers that are produced for the Shavu'ot holiday."
Tnuva's workers committee decided on the labor sanctions, after negotiations with management broke down yesterday. The employees are demanding at least the same remuneration for Apax's sale of control in the company to Bright Food as they received when Apax acquired control. In that deal, the employees received an average bonus of five monthly salaries, amounting to over NIS 100 million. Simhi says that Apax's opening position was a bonus of two salaries, at a cost of NIS 30 million, and that there has been no subsequent progress in the talks.
Under Jewish tradition, dairy dishes are eaten on Shavu'ot, which falls next Wednesday. Sales of dairy products jump ahead of the holiday, and the timing of the labor sanctions at Tnuva gives the employees leverage in the negotiations.
Published by Globes [online], Israel business news - www.globes-online.com - on May 27, 2014
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