Hadera Paper strike ends

Employees will receive a pay rise and their rights under the collective agreement will be restored..

The strike at Hadera Paper Ltd. (TASE: AIP; Pink Sheets: HAIPF) is over after one day, as employees returned to work this morning, following an agreement reached between the workers and management.

Histadrut (General Federation of Labor in Israel) Trade Union Division chairman Avi Nissankoren led last night's negotiations. Under the agreement, Hadera Paper employees will receive a pay rise in stages, a non-absentee bonus, and an 11.5% promotion supplement, which will be paid in 2012-13.

The parties also agreed that all collective agreements and procedures that were in place to date will be implemented until the agreement expires at the end of 2013, including social services, participation in daycare expenses and the provision of college scholarships for employees' children. Only if Hadera Paper has no operating profit, employees will contribute half of their outstanding annual bonus toward streamlining and improving the factory's financial position.

Nissankoren said, "I welcome the rapid end of this crisis for the good of both the employees and the factory."

Histadrut Trade Union Division Hadera Regional secretary Moshe Breinin said, "I welcome the agreements reached by Avi Nissankoren with management. This restores all the employees' rights under the collective agreement that were taken away. I hope the factory's financial situation will quickly improve for the good of both the employees and the factory."

Hadera Paper's share price fell 1.1% in morning trading to NIS 135.60, giving a market cap of NIS 690 million.

Published by Globes [online], Israel business news - www.globes-online.com - on June 5, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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