115 layoffs as Harsa plant set to move to Turkey

Harsa factory Photo: Rafi Kutz
Harsa factory Photo: Rafi Kutz

The plant in Beersheva has been producing bathroom fixtures for the past 70 years.

115 workers at the Harsa plant in Beer Sheva stand to lose their jobs. Workers at the plant, which produces bathroom fixtures and belongs to the Hamat group, are demonstrating in front of the gates of the plant, because management intends to close it down and move production to Turkey. The Histadrut (General Federation of Labor in Israel), which supports the workers anxious about their future employment, said that according to talks held with senior executives at the plant with Histadrut representatives, most of the workers would receive layoff notices. The Histadrut added that the plant's management had hired guards to prevent access to the plant.

Workers at the plant were all on vacation for the Passover holiday for the past two weeks. When the vacation ended today, they were surprised to discover that management did not intend to renew production at the veteran plant, which has been operating for the past 70 years.

Histadrut Negev District chairperson Meir Babiof instructed workers at the Harsa plant not to accept the layoff notices, which are due to be delivered to their homes by special delivery.

Babiof said, "Several dozen security guards, hired thugs, entered the plant, so that it would be closed off when the workers arrived. The plan is closed down and the workers were told, 'There is no reason for you to come to work.' A meeting is scheduled later today between Histadrut Negev District representatives and Harsa CEO Ido Shefer, who acts in the name of owner Yoav Golan. We do not intend to abandon the workers after 70 years of manufacturing. We will demand and insist on improved terms and enlarged compensation after the plant is closed down. We aim to reached agreement through negotiations, but if no agreement is reached, we will conduct an uncompromising campaign. I am coordinating with Histadrut chairperson Arnon Bar-David, who gave full backing to the struggle on behalf of the workers. Management constructed an alternative plant in Turkey and then announced the closing down of the plant in Israel, because it is unprofitable for the owner. As far as he is concerned, the workers can go to hell. We are unwilling to accept this."

Yoav Golan was recently in the headlines as a potential buyer for Israir from IDB Development. He announced that he planned to acquire the airline as a 70th birthday present to himself - a $55 million gift - but it has so far failed to materialize. Golan was vigorously opposed by the Israir pilots' committee, which argued that transferring ownership to Golan would pose an existential threat to Israir's future. They explained their fear by Golan's actions with the workers at Hamat, with an emphasis on events at the Harsa plant.

A source close to the Hamat group told "Globes" that the Harsa export plant in Beersheva would be closed down, adding that its production line would be transferred to Turkey. The source also said that 95 workers were employed at the Harsa plant, and that the Hamat group's enterprises had a total of 500 workers. He stated that efforts were being made to find other employment solutions for the Harsa workers.

The source claimed that the source of the dire state of the Harsa plant was the complete removal of import taxes on bathroom fixtures, as a result of which imports of products from Turkey had made production in Israel unprofitable, while production costs in Israel were higher than in Turkey. Despite the closure of the production plant in Beer Sheva, Hamat's management decided that the company's research and development would remain in Israel.

Harsa has not yet made any official response.

Published by Globes, Israel business news - en.globes.co.il - on April 29, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Harsa factory Photo: Rafi Kutz
Harsa factory Photo: Rafi Kutz
Big banks CEOs credit: Oren Dai, Jonthan Bloom and Israel Hadari Israeli banks unveil NIS 3b customer benefits package

The benefits over two years meet the target set by the Bank of Israel to ease the burden for customers, while the banks are reporting record profits.

Eilat's old airport Photo: Shutterstock Building set to begin on former Eilat airport land

2,469 housing units will be built as well as 2,776 hotel rooms, 88,000 square meters of office space and 95,000 square meters of commercial space.

Liron Horshi credit: Jonathan Bloom Wiz's talent manager nurtures $1b workforce

Wiz's $32 billion sale to Google was rooted in the cloud security product if offers but could not have been achieved without the quality of its employees built by human resources chief Liron Horshi.

Gas station in Israel credit: Tali Bogdanovsky Gasoline prices in Israel to rise Monday night

The maximum price of government price controlled 95 octane gasoline at self-service pumps in Israel will rise on Monday at midnight April 1, 2025, by NIS 0.08 per liter to NIS 7.31 per liter.

Israeli apartments Credit: Shutterstock Apartments sold and rented

A selection of recent real estate deals in Israel in Givatayim, Ra'anana, Modiin-Maccabim-Reut, Gedera, Kiryat Shemona and Ashkelon.

Fencing goes up Petah Tikva's Segula neighborhood  credit: NTA The Metro is really happening

Although there are skeptics who doubt that the project will ever be realized, there are now enough signs on the ground to indicate that they are probably wrong.

Ben Gurion airport Terminal 1 credit: Shutterstock Ben Gurion airport's Terminal 1 reopens

Terminal 1 at Ben Gurion airport reopened yesterday to domestic flights, while international flights will start using the terminal from Sunday, March 30.

Minister of Interior Moshe Arbel credit: Cadya Levy Interior Minister: There is no deep state in Israel

Minister of Interior Moshe Arbel told the Globes Services conference that civil servants are dedicated employees who serve the public.

Minimum wage credit: Tali Bogdanovsky Minimum wage in Israel to rise next week

The monthly minimum wage in Israel will be revised upwards by 6%.

Bank of Israel  credit: Shutterstock/Alon Adika Bank of Israel slams gov't fiscal policy

Governor Prof. Amir Yaron wrote in the annual report that the government's measures are not enough to ensure a sustained decline in debt-to-GDP ratio.

Minister of Justice Yariv Levin credit: Noam Moskovitz Knesset Spokesperson Knesset passes Judicial Selection Law

The new law makes judicial appointments subject to political control.

Airbnb credit: Reuters Knesset ignores Airbnb tax evasion loophole

The Israel Hotels Association has slammed the government's indifference to tax evasion by Airbnb landlords, which it insists promotes unfair competition.

GMT CFO Eran Tibon credit: PR Political tensions tempt Israelis to move funds abroad

According to data from advanced financial services company Global Money Transfer, steps taken by the Israeli cabinet to oust Shin Bet chief Ronen Bar, and Attorney General Gali Baharav-Miara, could cause capital to flee Israel.

Sde Dov credit: Guy Yehieli Tenders close for 2,744 more homes in Sde Dov

Four tenders closed last month for the north Tel Aviv district saw a decrease of about 40% in the prices of land, and there is great interest in the prices these latest tenders will fetch.

Rafael CEO Yoav Turgeman credit: Rafael Spokesperson Rafael CEO: Iron Beam will be ready in 2025 as promised

In presenting record financial results for 2024, Yoav Turgeman tells "Globes" that the high energy laser weapon system will be operational this year.

Tel Aviv credit: Shutterstock Rent rises moderate due to emigration and reserve duty

Rents only rose 4% in 2024, the Bank of Israel reports, despite the large number of evacuees, due to the negative migration balance and the large number of young people in the army reserves.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018