Histadrut declares labor dispute at 3 Israel Chemicals units

The Histadrut Negev District secretariat declared a labor dispute at three Israel Chemicals' magnesium, bromine, and transport units.

The labor dispute at Israel Chemicals Ltd. (TASE: ICL) is intensifying. On Tuesday evening, the Histadrut (General Federation of Labor in Israel) Negev District secretariat declared a labor dispute at three Israel Chemicals units - the magnesium, bromine, and transport units - and their workers committee are preparing to meet with Israel Chemicals CEO Stephan Borgas on Thursday.

"Due to the streamlining plans at Israel Chemicals' plants, which threatens the companies' workers, we must approve the labor dispute," said Histadrut Negev District chairman Meir Babioff. "Just this week, the company began firing employees at Rotem Amfert Negev, and sent 130 people home."

In October, Israel Chemicals' management began distributing its 12-month streamlining plan among the managers of its units (Dead Sea Works, Rotem Amfert, Dead Sea Priclase Fused Products, and the magnesium, bromine, and transport units). The units managements convened the workers committees to notify them of the plan. The plan calls for radical changes in Israel Chemicals' workforce, work shifts, targets, and other measures. The company's employees fear that mass layoffs are in the works.

Israel Chemicals has 5,000 employees in the Negev, and the company is responsible for 20% of the region's GDP.

Israel Chemicals said, "The challenging situation in the markets in which Israel Chemicals operates requires the company to deeply examine ways in which it can enhance its competitive capacity. We join the call of the Histadrut and ask the committees to demonstrate responsibility and partnership in the process of strengthening the companies through open and joint dialogue."

Published by Globes [online], Israel business news - www.globes-online.com - on November 27, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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