The Histadrut (General Federation of Labor in Israel) has declared a work dispute at Amdocs Ltd. (Nasdaq: DOX), following what it described as Amdocs management stubborn refusal to negotiate a collective work agreement. The declaration means that the employees can begin sanctions in two weeks.
Amdocs, a provider of IT systems to communications companies, has an $8.7 billion market cap. Its employees began organizing under Histadrut sponsorship a year ago, and the Histadrut announced six months ago that it represented the Amdocs employees, after having obtained signatures from 1,800 employees, over one third of the company workforce in Israel. Amdocs has 4,700 employees in Ra'anana, Haifa, Sderot, and Nazareth.
At the same time, there were efforts to organize an internal workers' committee, but a court ruled that this was not a workers' organization.
In recent weeks, Amdocs employees have held several demonstrations near the Tel Aviv home of Amdocs CEO Eli Gelman in protest against his lack of response to their organization. The Histadrut said that now that a work dispute had been declared, the workers were planning "to intensify their protest measures."
"Amdocs management is refusing to recognize the committee, ignoring the law, and dragging its feet with excuses and legal proceedings," Amdocs workers committee chairman Uri Pinchasi said. "In high tech, where human capital is the most important resource, the engine and heart of the company , cooperation between management and the workers is especially important. It's time for Gelman to realize this, and to sit down and talk to the workers. Amdocs has a strong workers committee backed by workers in all the branches. We won't give up; we'll fight for our rights."
Amdocs Israel said in response, "There is no reason for the work dispute declared by the Histadrut, since the Histadrut did not manage to recruit the one third of the company's employees required for the legal status of a representative organization. Amdocs Israel management does not recognize an organization that the workers did not select to represent them. The Histadrut's declaration of a labor dispute is a belligerent and unjustified step that is inconsistent with the organizational culture at Amdocs Israel. Company management will continue its actions for the benefit and welfare of its employees."
Published by Globes [online], Israel business news - www.globes-online.com - on April 10, 2016
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