While Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) is trying to buy Israel Military Industries from the state, and is the sole bidder in the tender being held by the Government Companies Authority, it is facing trouble at home. 1,300 employees at its subsidiary Elop went on strike today at the company's offices in the Rehovot Science Park, after the Histadrut (General Federation of Labor in Israel) declared a labor dispute at the company a month ago.
Elop develops and produces advanced electro-optic systems for military and security use, and sells its products locally and overseas. CEO of the company is Elad Aharonson.
The Histadrut claims that Elop's management has hurt organized labor at the company, saying that it used destructive employment methods. According to the Histadrut, employees were transferred to employment by other companies connected to Elbit Systems, in an attempt to prevent the Elop workers' collective labor agreement applying to them. The Histadrut said that Elop had not desisted from this policy even when warned that it constituted a blatant infringement of collective labor relations at the company.
Elop workers sharply criticized the company's management today, and accused it of what they called "dragging its feet" in implementing the collective labor agreement at the company. They pointed out that under the existing agreement, worker and management representatives are supposed to conduct negotiations every two years on pay rises for the employees. The workers and the Histadrut claim that although a year has passed since the date on which negotiations should have opened, Elop's management has ignored the matter and refused to talk to workers' representatives on improved conditions.
"As far as we are concerned, we've had enough," said Electrical and Electronics Workers Union chairman Gabi Asraf, "Elop's management is dragging things out with us and refusing to conduct genuine negotiations with us, and has even threatened employees that it will harm them if they cooperate with instructions from the workers' representative body. If the heads of the company do not come to their senses and change their conduct, and do not immediately sit down with us for negotiations, we will escalate our measures at all Elbit Systems plants throughout Israel."
Elbit Systems is controlled by Michael (Mickey) Federmann. In the third quarter of 2015, its sales totaled $2.2 billion.
Elbit Systems refused to comment.
Published by Globes [online], Israel business news - www.globes-online.com - on February 1, 2016
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