Employees at defense electronics company Elisra Group today launched a 24-hour strike, two weeks after announcing a labor dispute at the company. They are threatening to take other measures to disrupt production.
Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) owns 70% of Elisra and Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) owns 30%. Ever since Elbit Systems acquired its stake in 2006, Elisra's employees have worried about its plans to merge the company's with Elbit's other units, effectively liquidating the company.
Elisra is located in Bnei Brak, and Elbit Systems wants to move the company to its unit C4I (formerly Tadiran Communications) in Holon, and to other facilities. A few months ago, an agreement was reached under which Elisra and all its employees would move to new premises to be built in Holon, but the Histadrut (General Federation of Labor in Israel) claims that it recently learned that there are no building permits for the building, and that management wants to move groups of Elisra employees to various facilities.
Another reason for the labor dispute is the company bonuses for 2009-10. The Histadrut alleges that Elisra distributed large bonuses to employees with personal contracts, but small bonuses to the employees covered by the collective labor contract. The employees claim that the meaning is clear: the management of Elisra and Elbit Systems are sending a message that employees had better give up their collective contracts to get better compensation. This would weaken the union at the company and facilitate management's measures.
Published by Globes [online], Israel business news - www.globes-online.com - on December 26, 2010
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