Members of the Knesset's Finance Committee are demanding that Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) management freeze their planned 350 layoffs in Israel for three months during which time the pharmaceutical giant can hold talks with its workers committee and the Histadrut (General Federation of Labor in Israel). However, MK Micky Rosenthal (Zionist Union) has said that if Teva does not agree to this comporomise then, "The Committee will take off its gloves. Teva has received NIS 18 billion in tax benefits over the past decade that is an inconceivable amount."
Knesset Finance Committee chairman Moshe Gafni (United Torah Judaism) added, "There are situations in which we see a complete breakdown and then we on the committee can begin to talk about billions that Teva received from taxpayers. I say that the benefits that were given should have been given but only on condition that in the hour of need management talks with employees that have done their work for them. We don't oppose layoffs if the workers committee is a party to it."
Teva senior vice president corporate global operations David Lustig said that company would give its response within three days. He said, "My main task is to strengthen Teva in Israel. The employees are important to us, the company is important to us and the State of Israel is important to us. Teva is in crisis."
Lustig gave examples of recent investments in Israel including opening a biology lab in Kfar Saba and doubling the workforce in Kiryat Shmona. Teva announced last week that it is laying off an estimated 300-350 employees in Kfar Saba and Ramat Hovav as part of its streamlining program.
Gafni announced that the Finance Committee would reconvene next Sunday to continue discussing the matter in the hope that Teva's response was positive.
Published by Globes [online], Israel business news - www.globes-online.com - on July 30, 2017
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