Haifa Mayor Yona Yahav told the Knesset Labor, Welfare and Health Committee yesterday that El Al Israel Airlines Ltd. (TASE: ELAL) was going to close its office in Haifa, which would affect residents of the north. Yahav said that if El Al closes the office, he will lead a consumer boycott against the airline by northern residents.
El Al management and union representatives, as well as officials from the Ministry of Industry, Trade and Labor and the Histadrut (General Federation of Labor in Israel) also attended the committee meeting. El Al workers committee representative Yossi Levy said that management's claims of the need for cost cutting did not fit reality, given that the airline last month decided to distribute millions of shekels in bonuses to top executives.
A source said that El Al employed 13 people at its Haifa office.
El Al said in response, "El Al adapts to its changing business environment. As part of its assessment, it has offered all the 13 employees at its Haifa office, some of whom reside in the center of the country, alternative jobs at the company. Three other employees at the office will continue to work in northern Israel."
Published by Globes [online], Israel business news - www.globes-online.com - on June 16, 2011
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