As layoffs mount, Histadrut to unionize Clal Insurance

After months of efforts, the Histadrut (General Federation of Labor in Israel) today notified Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) that it will represent the company's employees. Histadrut Trade Unions chairman Avi Nissenkoren will notify Clal Insurance, a subsidiary of Nochi Dankner's IDB Holding Corp. Ltd. (TASE:IDBH), to this effect later today.

So far as is known, Clal Insurance's workers committee succeeded in signing up a third of the company's employees in the past few weeks, the percentage required for recognition of the union, and sought to unionize more employees to remove all doubts about the representation.

Clal Insurance's workers committee is the first in the insurance industry. The workers committee was established many years after the last workers committee at the company ceased operations, and comes against streamlining and layoffs by management. Clal Insurance has fired 49 employees at its computer unit, Clalbit, and sent layoff notices to more than 100 other employees. The layoffs come after Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) fired scores of computer employees several months ago.

Earlier this month, "Globes" revealed that scores of Clal Insurance employees have been summoned to layoff hearings. Market sources say that more than 100 employees are affected, but sources close to management say that the figure is "only" around 30 employees.

Since Izzy Cohen was appointed CEO of Clal Insurance, it has fired more than 130 employees.

Clal Insurance declined to comment about the layoffs.

Published by Globes [online], Israel business news - www.globes-online.com - on January 28, 2013