Israel Chemicals Ltd. (TASE: ICL) has agreed to freeze its planned layoffs and engage in intensive talks with the Histadrut on the matter. Employees had planned to stop work at 11 am on Wednesday, and go to the Rotem Amfert Negev plant, where management initiated a lockout today to protest. But this action has now been called off.
The Histadrut (General Federation of Labor in Israel) had said that management must end the lockout at Rotem Amfert and withdraw the six layoff notices already sent to the 127 Rotem Amfert employees set to be fired as conditions for renewing talks on the company's restructuring plan. Eini apparently persuaded the union at Dead Sea Works to join the industrial action by Israel Chemicals' other units. Until now, Dead Sea Works continued operations as usual.
Sources inform ''Globes'' that Eini took the step, following talks with Israel Chemicals executives in the past few days. They proposed to Eini to hold intensive negotiations in the coming week, provided both sides refrain from unilateral actions. Eini reportedly rejected the offer so long as the layoff notices are not withdrawn.
Israel Chemicals' management is furious with the comparison with the management at IDB Holding Corp. Ltd. (TASE:IDBH) unit Hadera Paper Ltd. (TASE: AIP; Pink Sheets: HAIPF), which also initiated a lockout because of a labor dispute. Hadera Paper is demanding employees sign an agreement on a salary cut as a condition for ending the lockout, but Israel Chemicals' management says that its only condition for ending the lockout is the holding of purposeful talks and recognition by the unions of the need for layoffs.
Israel Chemicals notes that Rotem Amfert's Moroccan competitor, which controls over 50% of the global phosphates market, is cutting prices to drive rivals, including Rotem Amfert, out of business. Israel Chemicals also notes that Potash Corporation of Saskatchewan Inc. (NYSE; TSX: POT) is cutting its workforce by 20%.
Published by Globes [online], Israel business news - www.globes-online.com - on December 10, 2013
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