Sources inform ''Globes'' that Zim Integrated Shipping Services Ltd. president and CEO Rafi Danieli met employees this morning in Haifa to update them on recent developments since the Israel Securities Authority torpedoed a $100 million capital injection into Zim by its parent company, Israel Corporation (TASE: ILCO), to prevent its collapse.
Behind the scenes, Zim's management is negotiating with the workers committee and the Histadrut (General Federation of Labor in Israel) Haifa Branch on the laying off of dozens of employees, in addition to the layoffs already agreed to a few months ago. On Sunday, the parties will hold an important meeting in an attempt to reach an immediate settlement.
"It's clear to us that an agreement is necessary because the situation is complicated," said Avi Weissand, who is responsible for Zim at the Histadrut Haifa Branch. He said that he had been notified about the meeting between Zim's CEO and its employees, and that he considered the meeting to be a proper step by Danieli.
"Globes": How are talks on the retirement of employees conducted?
Weissand: "Our principle is that everything must be consensual. Layoffs should not be compelled. Zim's management will send us a list of employees, and in my experience, the committee approves 70-80% of the list, so long as it is within the agreement reached."
Weissand added that not all of the layoffs will be among people over 50, since Zim's management will probably include employees it considers unproductive in the list.
Zim confirmed that the meeting was held this morning.
Published by Globes [online], Israel business news - www.globes-online.com - on September 3, 2009
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