Workers at Israel Chemicals Ltd. (TASE: ICL) phosphates unit Rotem Amfert Negev today launched a protest strike against what they call "unilateral acts by management and its violation of agreements." Rotem Amfert has 1,100 employees, of whom 103 recently retired as part of the company's streamlining plan.
The voluntary retirement plan was concluded by Rotem Amfert and the Histadrut (General Federation of Labor in Israel), but the employees say that Israel Chemicals' management is now seeking to fire 24 more employees.
Rotem Amfert workers committee chairman Moshe Hadad said that the strike would continue until further notice. He said that returning to work was subject to withdrawal of the layoff notices. "All of the company's sites are on strike, and the 1,100 employees stayed home today," he said.
Sources at Rotem Amfert's management said that reason for the crisis at the company was the workers' demand for the hiring of 40 new employees to replace those who had retired. Management rejected the demand, saying that it contradicted the streamlining. As a result of the dispute, management reverted to its original plan to fire 127 employees, resulting in the 24 new layoff notices.
Employees began shutting down the complex production machinery yesterday. Management said that it would therefore not pay the striking employees' salaries for two days. Sources close to the company said that it would not resume production until management and the workers committee reach an agreement.
Israel Chemicals said in response, "In view of the crisis in the fertilizer market and the fierce competition from competitors, the company is intensively implementing the emergency plan at Rotem Amfert. The plan is necessary to give the company the right to exist financially and to compete in foreign markets… Because the workers committee has withdrawn from the proposal, management was forced to return to its original plan to reduce the workforce by 127 employees, of whom 103 have already voluntarily retired at preferential conditions."
Published by Globes [online], Israel business news - www.globes-online.com - on March 13, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014