For the first time since 1989, Chemagis Ltd. has signed a collective agreement with its employees. The Ramat Hovav-based company is a subsidiary of Perrigo Company (Nasdaq:PRGO; TASE:PRGO), acquired through the acquisition of Agis.
Most of Chemagis' 250 employees are covered by the agreement, which includes a 7% pay hike over the next two years. The agreement does not apply to managers and other employees hired under personal contracts.
Chemagis manufactures active pharmaceutical ingredients (APIs), with most output exported. For this reason, it was not obvious that the company's management would agree to a pay hike because of the global economic crisis.
Histadrut Negev district chairman Meir Babioff said, "This is a historic moment for me because after nearly 20 years, workers at Chemagis did not have collective agreements unlike other plants at Ramat Hovav, such as Makhteshim Agan Industries Ltd."
Published by Globes [online], Israel business news - www.globes-online.com - on October 30, 2008
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