The management of Clal Industries and Investments Ltd. (TASE: CII) unit Hadera Paper Ltd. (TASE: AIP; Pink Sheets: AIP) has threatened to fire hundreds of tenured and non-tenured employees after talks with the workers committee broke down. The talks took place last week with the mediation of the Ministry of Economy's employment relations department.
Management claimed that the workers committee is refusing to lower salaries even though permanent staff benefit from average monthly salary costs of NIS 25,000 while the company lost NIS 60 million in the third quarter of 2013.
Firing those staff without tenure is possible even without consulting with the workers committee, however, the company headed by CEO Ofer Bloch made it clear that it will also demand talks with the workers committee about laying off tenured staff.
It is highly doubtful that firing temporary employees with relatively low salaries will bring about any improvements and it looks as if management is merely flexing its muscles. On the other hand, the management has made it clear that due to losses because of a global fall in demand for white paper there is no alternative but to take major streamlining measures.
Published by Globes [online], Israel business news - www.globes-online.com - on December 1, 2013
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