Israel Military Industries Ltd. (IMI) management and workers committee signed agreements on Wednesday as part of the deal reached several months ago to privatize the company. The Histadrut (General Federation of Labor in Israel), Ministry of Finance, and Government Companies Authority signed the agreements last night.
The agreements include the retirement of 1,170 IMI employees, a labor contract with the remaining employees and an agreement on a safety net for the employees' rights after the privatization, which will cost NIS 830 million. The company currently has 3,500 employees.
IMI's employees will receive a pay hike for the last two labor contracts for government workers (5% in 2009 and 7.25% in 2011), which were not paid because of IMI's poor financial condition. The labor contract for the remaining employees includes a 6% pay hike spread over three years.
IMI's privatization agreement includes moving most of the company's activity from Ramat Hasharon to Ramat Baka in the Negev by 2020. The vacated land in Ramat Hasharon will be sold.
Published by Globes [online], Israel business news - www.globes-online.com - on April 10, 2014
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