At least 2,000 employees of the Israel Postal Co. will be let go as a result of a series of measures being led by the Ministry of Finance, the Government Companies Authority and the Ministry of Communications being opposed by the workers committees and the Histadrut General Federation of Labor. The Israel Postal Co. currently has 7,500 employees. A comprehensive reform is planned in partnership with the Ministry of Finance in order to rehabilitate the Israel Postal Co. so that it can be privatized within a few years.
The reform, already reported by "Globes," will involve comprehensive regulatory changes in supervising the sector, as well as reducing the number of delivery days, closing branches, selling real estate, entering new fields to best take advantage of post office branches, and becoming more aggressively competitive in the parcel courier sector.
The Ministry of Finance will bear the costs of the organizational changes - mainly the early retirement of employees so that the company can meet its bond repayment of NIS 400 million by 2021.
The government has no current plans to privatize Israel Postal Co. because its financial situation is most problematic and it must reorganize in accordance with changes in the field both in Israel and worldwide.
Published by Globes [online], Israel business news - www.globes-online.com - on December 22, 2013
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