IEC's labor bylaws stipulate that management must obtain the consent of the layoff committee for the firing of any employee at the company.
The Histadrut (General Federation of Labor in Israel) has foiled a precedent-setting initiative by Israel Electric Corporation (IEC) (TASE: ELEC.B22) CEO Amos Lasker to fire 20 executives without the consent of the workers committee. The Histadrut vetoed the measure, although Lasker had the consent of the layoff committee, which agreed to the measure in exchange for Lasker's promise to grant tenure to 200 non-tenured employees.
IEC's labor bylaws stipulate that management must obtain the consent of the layoff committee for the firing of any employee at the company, and a list of employees to be laid off is sent to the committee for approval.
Three months ago, Lasker initiated a plan, which included the retirement of eight executives and the laying off of twenty others.
Published by Globes [online], Israel business news - www.globes-online.com - on June 10, 2010
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