Delta Galil Industries (Nasdaq: DELT; TASE: DELT) has closed its underwear factory in Carmiel, laying off its 137 employees. This was the company's last underwear factory in Israel, producing goods for export to the EU.
The process of closing the factory began three weeks ago, when the employees were sent on paid leave. The factory's management told the employees that the halt in production was due to a lack of orders. When the leave was prolonged, some employees told the Histadrut (General Federation of Labor in Israel) that their vacation rights had been used up and asked it to clarify their rights.
The Carmiel factory had earlier hired employees laid off from Delta Galil's factories in Julis, Shfaram, and Nazareth, which were closed due to the crisis in Israel's textile industry and the difficulties in competing against textiles produced in Arab countries and the Far East.
Delta Galil said in response, "The closure of the factory is part of our long-term plan toshut down sewing operations that cannot compete globally. Even after the closing of the factory, Delta Galil will still be one of the largest employers in the Galilee, with over 2,700 employees, half of whom work in production."
Published by Globes [online], Israel business news - www.globes.co.il - on February 9, 2005