Employees at Teva Tech locked the factory's gates.
Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) faces its first-ever labor disruptions, as employees at Teva Tech Ltd., the flagship of the company's chemicals division locked the factory's gates. The employees also disrupted the supply of oil to the factory, shutting down its production and deliveries.
The Teva Tech workers committee, backed by the Histadrut (General Federation of Labor in Israel), want to set a precedent at Teva, by establishing regular salary tables and automatic pay grade rises on the basis of seniority. This is the principle applied in the public sector. The employees are also seeking an exemption from a clause that Teva's management insisted upon in the current labor contract, giving management the exclusive right to determine employees' bonuses.
Teva said in response, "The company regrets that the workers committee at Teva Tech chose the route of sanctions despite the efforts made to reach an agreement. Teva has a longstanding tradition of exceptional labor relations, which give the workers committee every respect. Teva gives its employees fair working conditions and believes that dialogue is the proper way to resolve all disputes."
Published by Globes [online], Israel business news - www.globes-online.com - on June 22, 2008
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