Employee demands may hold up Bezeq sale

Bezeq's employees are demanding that Shaul Elovich guarantee their rights under the current collective labor contract, or else face grief later.

Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) workers committee today announced demands to complete negotiations to secure employees' rights before the sale of the controlling interest in the company to Shaul Elovitch-controlled 012 Smile.Communications Ltd. (Nasdaq:SMLC; TASE: SMLC) by Ap-Sab-Ar Holdings Ltd. (the Apax Partners-Saban Capital Group Inc.-Arkin consortium). Sources inform ''Globes'' that the workers committee sent a letter to Elovitch demanding immediate negotiations, or else face grief later.

Bezeq's employees are demanding that Elovich guarantee their rights under the current collective labor contract. They are also demanding compensation for the transfer of control in the company. They made the same demands of Apsabar when it acquired control of Bezeq several years ago.

The workers committee told Elovitch that his acquisition of Bezeq was partly made possible because of the employees' contribution to the company's success, and because they had agreed to many concessions to enable Bezeq to reach its current condition as a strong and stable company.

Bezeq's share price fell 0.4% by mid-afternoon today to NIS 10.46.

Published by Globes [online], Israel business news - www.globes-online.com - on March 16, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018