Supermarket chain Blue Square Israel Ltd. (NYSE: BSI; TASE: BSI) reportedly plans to fire 120 employees, less than a month after the company's workers committee crowed that it had signed a labor contract that included a 4% wage hike. 20 of the employees to be fired are headquarters staff with personal contracts.
Blue Square's management said that the company periodically makes staff adjustments, especially after Passover. It added that the reduction in headquarters staff was part of the company's cost-cutting strategy. It also said that 90 of the 120 employees to be fired were temporary staff hired to deal with the pre-holiday rush.
At the same time, Blue Square's health food chain Eden Teva Market Ltd. is about to hire 50 people.
Histadrut commercial division head Reuven Perry said, "If Blue Square fires employees, it will only be by collective consent, but it's not at all certain that there will be any layoffs. Management may call this 'adjustments', but as far as we're concerned, it's a reduction in manpower, and that requires negotiations."
Published by Globes [online], Israel business news - www.globes-online.com - on May 4, 2009
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