Negotiations between the Histadrut (General Federation of Labor in Israel), the El Al Israel Airlines Ltd. (TASE: ELAL) workers' committee, and the company's management broke down a short time ago. Management rejected out of hand a proposal by the workers worth $1 billion in unpaid leave and other painful concessions, among them layoffs and wage cuts. The pilots also proposed a 20% cut in their salaries.
The workers' representatives issued an urgent call to all of the company's workers not to go on vacation today, and to appear for work. "You are all asked to go to El Al for an urgent vote on declaration of a labor dispute," the call states.
Histadrut chairman Arnon Bar-David said, "At the end of marathon negotiations that I led for 48 consecutive hours, El Al's management rejected all of the proposals we made in cooperation with the company's workers. There is an unprecedented crisis here, and management is refusing to accept that this is a fateful time, and that it bears a heavy responsibility. I am fearful for the future of El Al, and call on management to come to its senses. Management should accept the Histradrut's proposal and return to the negotiating table."
Histadrut Transport Division chairman Avi Edri added, "The sole desire of El Al's management is to enforce its will on its workers, without recognizing the importance of its human capital for the company's continued existence. We will cross the boundary today, and if management does not cooperate with the workers and the situation, the company is liable to collapse within a few days."
El Al workers' committee chairman Sharon Ben Yitzhak said, "El Al workers today offered the company's management streamlining measures amounting to $1 billion over seven years, with very painful concessions, and without the company's owners injecting a single dollar into the company in this crisis. The company's management and owners have decided to exploit the situation to try to extort the workers, and we will not lend a hand to this."
Published by Globes, Israel business news - en.globes.co.il - on March 12, 2020
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