The Knesset Finance Committee today approved a NIS 35 million capital injection into Israel Military Industries Ltd. (IMI) to pay September salaries and buy raw materials to ensure continuing production. IMI also reports significant progress in the talks between its employees, the Histadrut (General Federation of Labor in Israel), IMI's management, the Ministry of Defense and the Ministry of Finance on a privatization proposal.
The latest agreements include an arrangement for guaranteeing the pension terms of veteran employees who will terminate their employment after the privatization if they are fired by future buyer of the government defense contractor. These agreements include guaranteeing the rights of IMI's employees, as the company moves to the Negev in the coming years. IMI's land in Ramat Hasharon will be rezoned for housing.
The parties also reached agreement that a NIS 830 million safety net will guarantee IMI's ability to meet future severance payments to employees. A designated trust fund will be established to guarantee the safety net.
The talks between the ministries, the Histadrut, and IMI's employees also agreed that the employees will receive a pay hike in line with the pay hike at other government companies. The salaries of IMI employees have not been updated for years. In exchange, the employees will give industrial quiet during the privatization.
Published by Globes [online], Israel business news - www.globes-online.com - on October 23, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012