Tadiran Telecommunications, which manufactures Coral advanced telecommunications products, is negotiating to sell some of its manufacturing business, and plans to outsource its services.
Under the company management’s plan, 100 employees, a quarter of its workforce of 400, will be fired, and salaries will be cut by 12-15%.
The plan was a result of the company’s losses last year, amounting to millions of shekels, and its liquidity problems, which are hampering its current activity. Most of the company’s troubles stem from a drop in orders, both for export and in the domestic market. The recent loss of a large tender for supplying telephony equipment to the Ministry of Defense was also a serious blow to the company.
The principles of the recovery plan have been communicated to workers committee, headed by Haim Ben-Chelouche. Management has begun negotiations with the workers committee over increased severance pay to those who will be laid off.
Histadrut (General Federation of Labor in Israel) Petah Tikva district chairman Giora Nahum told “Globes”, “Tadiran Telecommunications has been in trouble for several months. We’re negotiating with management on a restructuring plan. I hope that the company will recover.”
Nahum added that the company had had “certain problems” a year ago, and the Histadrut had consented to 30 lay-offs and a 10% salary cut. “We haven’t yet received any official number of lay-offs, but we know that the company wants to outsource its services.
”We’re proposed several options, since we oppose most of company’s proposals. In addition, we demand that they present the company financial report to us, so that we can check the figures.”
Africa-Israel Investments (TASE: AFIL) and the Bregman family own Tadiran Telecommunications in equal shares. Two thirds of the company’s output is designated for export, and its annual business is estimated at $70 million.
Published by Globes [online] - www.globes.co.il - on June 9, 2004