Israel Electric Corporation (IEC) (TASE: ELEC.B22) chairman Yiftah Ron-Tal today told Galei Tzahal (Army Radio) that the company would lay off 600 more employees in 2016. "In 2015, after a struggle, we finally laid off 440 employees," he said. "In 2016, we will be in the middle of a plan - I'm saying this very carefully, because I very much hope it will be by consent in the framework of the reform - we'll have to lay off 600."
The last time the subject of laying off IEC employees was raised, workers committee chairman Miki Zarfati said in response, "If Ofer Bloch (IEC CEO) thinks I'll let him fire 1,500 workers, he's mistaken. IEC's situation is improving? It only looks that way to you. Do you think we'll rescue you in the next storm? You're all wrong."
The big storm indeed came in October this year, accompanied by a power blackout that affected tens of thousands of customers. Ron-Tal alleged that IEC employees had conducted scandalous sanctions, thereby drawing severe criticism from the IEC workers committee.
The other side of the picture is that IEC has carried an enormous debt for years, which recently rose above NIS 70 billion. The Ministry of Finance would like to see the company weakened, because that might also weaken the workers committee. IEC workers are still regarded as enjoying the best conditions in Israel, but the port workers have long since left them behind. The average age of IEC employees has exceeded 50, and the number of employees is definitely not increasing. It is therefore clear that the reform and 600 additional layoffs will not take place without an upheaval.
Published by Globes [online], Israel business news - www.globes-online.com - on December 14, 2015
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