El Al Israel Airlines Ltd. (TASE: ELAL) VP human resources Yehudit Grisaro posted a message to El Al employees on Friday stating unequivocally that the airline had to cut costs, including human resources costs.
The post was in response to questions from El Al employees about recent media reports quoting El Al chairperson Eli Defes about the company's need for streamlining. "Among other things, Mr. Defes said that the intention was to cut expenses and reduce human resources wherever possible and reach agreement with the workers," Grisaro wrote to the company's workers on their Facebook page.
"It is no secret that El Al faces very substantial challenges. We will not be able to succeed in these challenges if we do not drastically cut the company's expenses. We have already had to take a series of difficult measures and we will have to continue to do so in order to cut expenses in general and human resources in particular. As the person responsible for human resources at El Al, it is important to me to that all measures involving cutting expenses should be carried out with sensitivity, responsibility, and cooperation with your representatives."
El Al currently has 6,400 employees, of whom 650 are pilots. The El Al pilots committee is currently in prolonged negotiations with the company's management to update the agreement signed in light of the global flight regulations due to take effect this November.
El Al recently received the fifth of the 16 Dreamliners ordered by the airline. The new planes will enable El Al to cut fuel costs, an important advantage in view of the jump in oil prices, and maintenance costs, which will also affect the company's workers.
Published by Globes [online], Israel business news - www.globes-online.com - on July 8, 2018
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