The Histadrut (General Federation of Labor in Israel) is threatening severe rail disruptions beginning next week. In a statement, it said that Israel Railways employees will hold full strikes on Monday, Wednesday, and Friday, on a one-day-on/one-day-off basis, until further notice. There will be regular service on Sunday, Tuesday, and Thursday.
The Histadrut said that the disruptions were due to the deadlock in negotiations over the past month between Histadrut chairman Ofer Eini and Israel Railways chairman Uri Yogev over the decision by the company and the Ministry of Finance to outsource new rolling stock maintenance. The measure will eventually result in the closing of Israel Railways' maintenance network and weaken the power of its employees. Canada's Bombardier Inc. (TSX: BBD) is due to manage the new rolling stock maintenance system, and it has already been effectively promised this as part of the tender to supply rolling stock to Israel Railways.
The Histadrut says that, not only would the measure harm employees, it would also waste money, since Bombardier would have to set up new garages instead of using existing resources.
"It turns out that Israel Railways' top echelon is unwilling to accept any proposal, and it is determined to bring in contract workers," said Transportation Workers Union chairman Avi Edery. "We offered to meet all the target and productivity demands, and we offered to review the compliance with these goals after a period to be determined. Regrettably, the Ministry of Finance and Israel Railways chairman refuse."
Israel Railways management said that the company needed to change, and that it was making critical structural changes to be able to meet its targets and expected growth, and improve passenger service. "As we've said before, there is no privatization plan, and the salaries and jobs of current Israel Railways employees will not be harmed; on the contrary," Israel Railways management said.
Published by Globes [online], Israel business news - www.globes-online.com - on December 29, 2011
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