The latest example of the unionization trend among high-tech workers is Amdocs Ltd. (Nasdaq: DOX). The Histadrut (General Federation of Labor in Israel) has begun organizing Amdocs workers, and the disclosure stage of the organization began today in an attempt to institute collective work relations at the company. The Histadrut said that dozens of workers, members of the operating committee, and Histadrut representatives had set up booths, distributed leaflets, and held explanatory meetings. The Histadrut added that the unionization of the workers reflected the workers' wish to ensure their employment security and terms. Amdocs did not respond to the report.
Ness Technologies was the first Israeli high-tech company with a workers' union, followed by workers at SAP Israel and Comverse Inc. (Nasdaq: CNSI).
Amdocs, managed by president and CEO Eli Gelman, provides IT systems for communications companies, and as of September 2014 had 4,500 workers in Israel in Ra'anana, Haifa, Sderot, and Nazareth - 20% of its total labor force. The company has had no major layoffs since the 2008-2009 crisis, and has even enlarged its labor force in Israel to some extent in recent years. "We're a group of veteran and dedicated workers in the company, and we're glad about the beginning of a new era at Amdocs," the Amdocs workers operating committee stated. "We believe that with the help of organizing through the Histadrut and an open dialogue, and with company management, we can reach a situation in which the employment security of work conditions of the employees will improve, while at the same time continuing the company's business success. We thank all the Amdocs workers who have already joined us, and encourage the rest of our comrades to join us as soon as possible." Internet, Cellular and Hi-Tech Workers Union chairman Yaki Haluzi said, "I'm glad and proud that Amdocs workers are joining the expanded family of the Internet, Cellular, and Hi-Tech worker s organized by the Histadrut. I'm confident that together, we'll achieve benefits for both the workers and the company."
Last week, Amdocs announced its acquisition of assets from the Comverse's billing division for $272 million. The acquisition is designed to affect mainly Amdocs workers in the US where the division is concentrated, while Comverse workers in Israel are affected mainly by the strategic deal announced by the company with Indian company Tech Mahindra. This deal involved laying off 570 workers at Comverse, some of whom will be hired by Tech Mahindra. In response, the Histadrut declared a work dispute at Comverse two weeks ago.
Published by Globes [online], Israel business news - www.globes-online.com - on May 4, 2015
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