The management of Arkia Israel Airlines Ltd. is threatening to fire 100 employees, out of a total workforce of 650, after negotiations broke down with the Histadrut General Federation of Labor for a salary cut for all the company's 650 employees.
The management is also threatening to close down entire departments and put other departments on a four day work week.
The tough stand of the Arkia management follows a significant fall in company revenue due to the global economic crisis and the fighting in Gaza.
At first Arkia's management was demanding a 10% across-the-board salary cut. But after negotiations management agreed to a 5% cut, with an additional 5% in lieu of vacation pay and described as a "loan" to be returned by the company to employees if the company makes a profit of at least $1.4 million this year.
However, sources inform "Globes" that the negotiations broke down after Arkia's management refused to also return vacation pay if the company reached the designated profit.
Published by Globes [online], Israel business news - www.globes-online.com - on February 8, 2009
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