The crisis in Israel Postal Company Ltd. is officially over. The principles of a recovery agreement for the company were presented at a press conference summoned by Minister of Communications Gilad Erdan, and Histadrut (General Federation of Labor in Israel) Chairman Avi Nissenkorn. The agreement concerns general principles, and will be followed by further negotiations, after court approval.
The new agreement extends postal hours and the number of days per week on which the branches will be open until 8 pm. The average waiting time in the branches will be 10 minutes (as measured daily per branch). In addition, the Postal Company will station mail-distributing machines in postal branches. 24-hour mail services will also be improved. 1,200 employees will lose their jobs.
The state and the Histradrut agreed that up to 20% of the Postal Company's shares would be allocated to a private investor, following by a public offering that would bring the total non-state holdings in the company to 40%. The state's stake in the company will remain at least 60%.
Following the press conference, Nissenkorn immediately ordered a halt in all sanctions in the Postal Company and the civil service. He said, "Today is a day of victory for social justice. We have saved the postal company and prevented layoffs of dedicated workers. The path we have followed in recent weeks is part of a struggle for principles being waged by the Histadrut for the human dignity of workers in Israel. Workers are not spare parts. Not only did we prevent the liquidation of the postal company; we also made sure that better service for people would be guaranteed by agreements. We proved that a good recovery plan is a plant that can be achieved in only one way - through agreement with the workers and the Histadrut."
Nissenkorn added, "Workers in the civil service and Israel Airports Authority showed real solidarity, but their struggle is not over. The state continues to perpetuate harmful forms of employment, and is deliberately expanding the use of contract workers. The state's behavior as an employer is at best irresponsible, and at worst widens the social gaps in Israel and encourages inequality. The Histadrut will continue to act against this unacceptable phenomenon with all the means at its disposal."
Published by Globes [online], Israel business news - www.globes-online.com - on October 7, 2014
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