Teva suspends dismissal letters to 150 employees

Teva Kfar Saba
Teva Kfar Saba

Earlier today 150 employees at Teva's Kfar Saba plant received layoff notifications buty they were suspended after the intervention of the Histadrut.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) today informed the 150 employees slated for layoffs at its plants in Kfar Saba. The company said that its actions were made necessary by lack of cooperation on the part of the workers' committees. Teva added that the layoffs would go into effect only after the High Holy Days; no employee will be laid off before then.

A little later, following intervention by Histadrut (General Federation of Labor in Israel) chairman Avi Nissenkorn, Teva agreed to suspend the letters. Workers will return to full work, and the parties will renew their negotiations in Nissenkorn's office in Tel Aviv next Tuesday.

After conducting intensive negotiations with the workers at its Teva Tech plant in Neot Hovav, Teva reduced the number of layoffs there by 65 employees, who will be sent to other departments in the company. Teva also negotiated with the workers in Kfar Saba for several weeks, but the company said in contrast to the workers' attitude at Teva Tech, it had encountered a lack of cooperation and foot-dragging at Kfar Saba.

1,000 employees are currently employed in the Kfar Saba plant. The company said that its management's efforts to create employment security had reduced the number of layoffs there by 25. "Teva is therefore announcing today that the consultation process in Kfar Saba has been exhausted, and a list of the workers whose further employment is being considered is being sent to the workers' representatives," Teva sources said today.

The letter being sent to the employees is as follows:

"Dear workers,

"During this crisis period, we are obligated to do whatever is necessary to enable Teva to maintain its leading position and success in a dynamic and competitive environment, among other things by safeguarding the future of Teva's production in Israel, which will give all of our workers a long-term employment horizon.

"Last week, we informed you that at the end of a prolonged and fruitful dialogue with the representatives of the Teva Tech workers and the Histadrut, we reached agreements that reduced the number of workers affected by the restructuring at the site from 175 to 110. Among other things, the parties reached agreements on the severance package and the timing of the measure, which will go into effect only after the holidays.

"Terminating the employment of any worker is a painful decision, taken after grave consideration, with maximum sensitivity and with attention to the worker and his or her background. We welcome the agreement, and thank the committee for showing responsibility towards all of the 960 workers on the site, in the realization that the measure is essential and a last resort that will bolster the site's competitiveness and ensure a sustainable future for it.

"Many attempts at a dialogue with the workers' committee in Kfar Saba were made in recent weeks with the aim of reaching agreements about the restructuring plan on the site. All of these efforts were in vain, and encountered foot-dragging on the part of the committee - exactly the same committee that was involved in the streamlining process that began in 2015 with a massive cut in management jobs and voluntary retirement for workers. Despite being well acquainted with the special challenges facing the site, the committee is now renouncing its responsibility, as if it has no part in the matter.

"We respect the function of the workers' representatives in this process, but regret that at this crucial time, the committee is behaving irresponsibly towards the workers of the entire site. The conduct of the committee in Kfar Saba, which regularly declares labor disputes on ordinary matters in dispute, and which evaded a healthy dialogue with all the other 10 committees in Israel, is astounding, and in the end harms the Kfar Saba site and all of its workers.

"In addition, at the current time, instead of devoting its efforts to settling the dispute at the Kfar Saba site, the Kfar Saba committee is spending all of its time in an attempt to gain a foothold and influence in the process taking place at Teva Tech in the Negev, while deliberately ignoring the agreement there accepted unanimously by the Teva Tech workers' committee and the Histadrut.

"This behavior on the part of the committee in Kfar Saba is irresponsible, harms the reputation and stability of the site, and jeopardizes the many measures taken with such hard work by the workers and management in recent years that were designed to lay the foundations for production of the company's future major products in Kfar Saba, thereby providing a long-term employment horizon for over 1,000 workers at the plant. Responsibility, judgment, and leadership from the workers, managers, and the workers' representatives are needed more than ever during this period in order to safeguard the future of our production sites in Israel, and to overcome the many challenges facing us.

"For this reason, and due to the unnecessary prolonging of the consultation process in Kfar Saba, on account of which all the workers on the site are in a state of uncertainty and anxiety concerning their professional future, we are announcing today - in accordance with the provisions of the collective agreement - that the consultation process has been exhausted, and that a list of containing the names of the workers whose continued employment is being considered, has been sent to the workers' representatives. At the same time, in accordance with the agreement, all the workers whose names appear on the list will be informed individually and with dignity by their managers.

"It is important to us to inform you that since we began this process, we have made every effort to find employment solutions for workers with the capabilities and qualifications suitable for changing their locations, while giving preference to workers with special individual cases. As a result, management at the site has succeeded in reducing by 25 the number of workers affected by the planned measure. The list now contains 150 names. We will thereby be able to create certainty for the company for all the workers on the site before the High Holy Days.

"Workers whose employment is being terminated will receive a packages and terms among the best in Israel. In addition, they will be granted personal help, including advice during the process of terminating their work, workshops, and professional training, as well as a connection with placement services that will help them find suitable alternatives. In any case, employment of the employees will be terminated only after the holidays.

"Parting from any employee is difficult, but with all the pain, we have to accept the process necessary for improving the site's competitiveness, embarking on a new path, and ensuring the future of the production sites in Israel, with their thousands of workers, for many more years."

Published by Globes [online], Israel Business News - www.globes-online.com - on August 27, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Teva Kfar Saba
Teva Kfar Saba
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018