The Israel Electric Corporation (IEC) (TASE: ELEC.B22) workers committee, under chairman David Zarfati, has carried out its threat not to allow IEC CEO Amos Lasker's decision yesterday to implement restructuring at the company without the workers committee consent to pass unchallenged. Zarfati today told workers to bar IEC executives from entering any of the company's offices in protest at management's unilateral implementation of IEC's "Compass" restructuring plan.
Zarfati's order includes the four new division managers Lasker appointed as part of the restructuring.
Sources inform ''Globes'' that the IEC workers committee has suspended all planned maintenance at substations as part of its labor sanctions. This action should not disrupt electricity supplies, but increases the likelihood of breakdowns in the electricity grid, especially if demand is high.
Sources close to IEC's management said in response that the employees' actions were thuggish, given that management is only carrying out restructuring measure that will not result in layoffs. The sources added that the employees' actions underscored Lasker's comment yesterday that the IEC workers committee should not be allowed a role in the company's management.
Workers committee sources said that today's actions were the first steps in its battle against the unilateral streamlining plan Lasker was formulating with the aim of firing 2,500 employees.
IEC said in response, "IEC's management continues to manage the company and will ensure regular electricity supplies."
Published by Globes [online], Israel business news - www.globes-online.com - on December 22, 2008
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