Israel Chemicals Ltd. (TASE: ICL) CEO Stefan Borgas said today that the only way for the company to survive was by firing employees.
"We must also improve efficiency. We did not do this enough in the past," Borgas said at the "Globes" 2013 Israel Business Conference. "We're not competitive in many cases, and we have high costs at the Dead Sea. Potash prices have fallen 30%, and phosphate prices have fallen 40%. We must fight for the future of our platform. We must make big changes. Outside, you will find some our diligent employees demonstrating against the layoffs, but this is the first time that this has happened in Israel in decades. This is the only way for us to survive these times."
Borgas said that the public criticism of Israel Chemicals worried him. "What greatly worries me… are the public claims that Israel Chemicals does not contribute to the Israeli economy. This angers me. I wish to tell you the truth: Israel Chemicals is the biggest employer in the Negev. We directly support 30,000 families, 20% of the Negev's GDP. We pay the most money of any Israeli company to the Israeli government. Each year in the coming years, we will invest NIS 2 billion in new plants in Israel. The Israeli public, through its pensions, is the company's biggest owner. We're one of Israel's three biggest exporters."
Borgas called for help from the government, saying, "We need the support of the Israeli government because without the ability to mine in the Negev we cannot grow."
While Borgas was speaking at the conference at the David Intercontinental Hotel in Tel Aviv, outside, Israel Chemicals employees demonstrated against the firing of 127 employees at phosphate subsidiary Rotem Amfert Negev. The layoff procedures at the plant have resulted in protests by the employees in the past few days, including locking the factory gates in the morning against the entry of contractors.
Published by Globes [online], Israel business news - www.globes-online.com - on December 9, 2013
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