Israel Electric Corp. reform delayed

No agreement has been reached with the IEC workers committee.

The Ministry of Finance has cancelled Tuesday's press conference at which it had planned to present the reform for Israel Electric Corporation (IEC) (TASE: ELEC.B22) and the electricity market. The ministry did not state the reason for the cancellation.

After years of talk and months of negotiations, the Yogev Committee, chaired by Government Companies Authority director general Ori Yogev, was supposed to disclose its recommendations for IEC reform. However, no agreement was reached with the IEC workers committee, and relations between IEC workers committee chairman Miko Tzarfat and IEC CEO Eli Glickman and chairman Yiftach Ron-Tal have shattered.

On Thursday, possibly in a last ditch effort to pressure the workers committee to agree to the reform, Glickman and Ron-Tal unilaterally canceled the automatic 7% pay hike in April. The workers committee said in response that management had lost it senses, and that it would not allow this to pass quietly.

At the same time, there has been a head-on collision at the Ministry of Finance, where Director of Wages Kobi Amsalem vehemently opposes the proposed compensation package to IEC's workers for agreeing to the reform.

Published by Globes [online], Israel business news - - on March 17, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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