The 800 employees of Zim Integrated Shipping Services Ltd. today launched labor sanctions in response to continuing pressure by the company and its parent company Israel Corporation (TASE: ILCO) on the government to waive its golden share in Zim. The labor sanctions will delay the movement of the company's ships.
Zim's employees decided on the sanctions, after Zim CEO Rafi Danieli told workers committee chairman Avi Sheetrit yesterday that he would continue to insist that the government waive its golden share, rejecting Sheetrit's demand.
The workers committee says that Danieli is demanding that Zim's employees end their campaign against the government foregoing its golden share in the company, and that Danieli also ordered a reduction in the employees work conditions. After today's union meeting, Sheetrit announced the one-day labor sanctions. The employees left their posts at Zim's offices in Haifa and in the ports.
On Tuesday, the government responded to petition regarding the golden share filed with the High Court of Justice by the Merchant Marine Officers Association two months ago. The government said that Zim's management raised the matter at a meeting three weeks ago with Minister of Transport Yisrael Katz, and that a review was underway on the alternatives for protecting the state's vital interests as stated in the golden share. This review is not yet completed. If the state decides to cancel or amend the golden share, the cabinet will have to approve it.
Sheetrit said, "Zim's employees and Israel's people should not have to pay for the failure of the company's management and forego the golden share, which would destroy our livelihoods and seriously damage the country's security. The company's management claims that alternative arrangements can be reached instead of the golden share, but we must not believe it. We've already seen in the past few months that the company has been moving activity overseas, and if, heaven forbid, the government waives the golden share, we believe that the company's activity in Israel will be eliminated, and in the event of a missile attack on Israel no ship will enter the country, and we are liable to remain without food, fuel, or weapons."
Published by Globes [online], Israel business news - www.globes-online.com - on April 9, 2014
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