Nova Measuring Instruments Ltd. (Nasdaq:NVMI; TASE:NVMI) is switching to a four-day workweek through the end of the first quarter. The move follows similar measures by Amdocs Ltd. (NYSE: DOX) and Iscar Ltd.
Yesterday, Nova notified employees of the measure, and began signing them on new work contracts at 80% of full-time. Salaries will be cut accordingly. Amdocs, in contrast, has required employees to use their vacation time for the one month duration of the short workweek.
Nova president and Gabi Seligsohn told "Globes", "This decision was different from other capitalistic decisions that you receive because in our case the alternative was to fire dozens of additional employees."
Nova fired 65 of its 285 employees during 2008, some at the start of the year and others at the end, as the semiconductor industry - Nova's target market - halted new investment in production lines and new equipment.
Seligsohn added that liquidity is Nova's biggest problem because it is unable to obtain credit to help it through the current crisis. "The Ministry of Finance's proposed debt recycling funds are not a solution because few companies meet its criteria for obtaining credit. It's necessary to increase the government's guarantees and simply force the banks to release loans," he said.
Nova closed at $0.57 on Nasdaq yesterday. The share fell 11% to NIS 6.80 by mid-afternoon on the TASE today.
Published by Globes [online], Israel business news - www.globes-online.com - on March 3, 2009
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