El Al reaches further agreements with employees
Signing of agreement at El Al / Photo: Histadrut spokesperson
CPI up 0.5% in October as housing prices fall
CPI up 0.5% in October as housing prices fall
Administrative and maintenance staff have agreed to layoffs and other measures meant to save $88 million annually.
El Al Israel Airlines Ltd. (TASE: ELAL) has signed collective agreements with two more groups of employees. After overnight negotiations, the Histadrut (General Federation of Labor in Israel), the workers committees and El Al's management agreed on a streamlining program for administrative and maintenance staff. These sectors employ more than 4,000 people, a third of whom will be laid off. El Al recently signed an agreement with its 1,400 cabin staff, but the main challenge remains the workers committee of the airline's 650 pilots. 95% of El Al's employees are currently on leave without pay.
El Al said in its announcement that’s besides layoffs, streamlining measures in its administrative and maintenance sectors would also include a transition to working digitally, more efficient procedures, and other efficiency moves. The agreements, which are meant to save $88 million annually, are conditional on the airline receiving a $250 million state guaranteed loan and carrying out a $150 million equity offering also with state backing (which is likely to lead to state control), under the plan agreed with the Ministry of Finance.
Published by Globes, Israel business news - en.globes.co.il - on July 8, 2020
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Signing of agreement at El Al / Photo: Histadrut spokesperson