Israel Chemicals Ltd. (TASE: ICL) today sent layoff notices to 130 employees at its Rotem Amfert Negev Ltd. subsidiary. Israel Chemicals' management made the decision to fire the employees a few weeks ago, as part of the company's adjustment of its activity to the global market conditions and its streamlining measures.
Israel Chemicals says that 90 of the laid-off employees were sent on early retirement with good terms, including an NIS 800,000 bonus, a fixed monthly payment of NIS 18,000 until the age of 67, and pension provisions. It should be noted that these employees currently earn around NIS 30,000 a month, and they are facing a substantial loss of income.
In the past few weeks, most of Israel Chemicals' workers committees have expressed deep concern about management's streamlining measures, which they claim has been called "ground zero". The unions fear that the streamlining will include extensive layoffs at the company's units, and the unions have been disruption operations at them.
Rotem Afert said in response, "Rotem Afert Negev is in one of its most serious crises in years, which requires it to undertake an emergency streamlining plan. This plan has several components, including the postponement of investments, the cancellation of contracts with outside suppliers, and pay cuts for executives and workers. As part of this plan, the company made serious and honest attempts to reach an agreement with the workers committee on the early retirement of employees at excellent terms. Despite these efforts, the workers committee refused to cooperate, and the company today announced that it intends to fire 127 employees.
"Management calls on the workers committee to negotiate to reach agreements. We are talking about a very painful process for the company, but it is necessary given the reality in order to allow the company to successfully compete against its big competitors in international markets, while guaranteeing jobs for more than 1,100 direct employees and the livelihoods of another 8,000 indirect workers."
Published by Globes [online], Israel business news - www.globes-online.com - on November 25, 2013
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