The cost of severance pay to Histadrut workers, soon to be laid off or retire as part of an additional round of downsizing announced yesterday (Monday) by the Histadrut leadership, is expected to reach NIS 50-100 million, according to estimates submitted by a senior Histadrut official.
According to plan, 800 workers will be laid off in the coming months, of which 200 layoffs will be effected within weeks and the remaining 600 in the first few weeks of 1997.
If the plan is executed, those laid off will receive improved severance pay conditions, calculated according to a formula set in the first round of lay-offs, two years ago. Severance payment will be increased up to 250%.
The legal advisor to Histadrut-affiliated women's organization Naamat, Adv. Dorit Inbar, today sent a letter to Histadrut chairman Amir Peretz demanding an immediate payment of NIS 18.5 million
Inbar warned Peretz that if payment was not transferred within 7 days, she would take all necessary legal measures to ensure their receipt.
General Manager of the Histadrut Chair's Office Dr. Aliza Schluss, submitted her letter of resignation today. Schluss resigned over plans to cut her salary drastically, along with other senior Histadrut officials. Schluss's salary was one of the highest in the Histadrut, costing the organization NIS 45,000 per month.