The Israel Electric Corporation (IEC) (TASE: ELEC.B22) workers committee has decided in principle to launch wide-scale labor sanctions to protest the start of implementation of the restructuring plan at the company. The measures include suspending all work on the IEC's emergency plan, stopping the licensing of natural gas facilities, and halting the purchase of fuel, including natural gas, and the unloading of coal ships.
The IEC workers committee will also stop repairs, except in emergencies. A number of regional centers have been shut down to protest plans to consolidate some regions under the restructuring plan. The Krayot, Afula, and Ra'anana regional centers have been closed at this stage. The workers committee has also suspended training programs, including for the company's ERP project.
These are the toughest labor sanctions decided upon by the IEC workers committee in the past two years. The last time that it stopped unloading the coal ships was when the government sought to implement the IEC restructuring plan through legislation.
Sources estimate that if the IEC workers carry out all the labor sanctions, electricity disruptions could develop within a few days. IEC keeps enough fuel at its power stations for one week of operations.
Sources believe that IEC's management will today ask the labor court to issue an injunction against the sanctions, which are liable to cost the company millions of dollars a day.
Published by Globes [online], Israel business news - www.globes-online.com - on August 10, 2008
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