The state will pay compensation for 1,050 employees who will lose their jobs and inject a further NIS 500 million into the company.
The Israel Postal Co. board of directors has approved the company's recovery plan, which requires the government to inject NIS 1.7 billion into the ailing company, ahead of its planned privatization.
Under the plan formed by Israel Postal Co. together with the Ministry of Finance Budget Division and Ministry of Communications, 1,050 employees will be laid off with the state bearing the cost of the NIS 1.1 million average per employee. Before privatization is completed, the company will need to lay off several hundred more employees.
At the same time, the state will inject NIS 500 million into Postal Co. as part of a recovery program. In exchange the Postal Co. will transfer to the state dozens of properties which it will sell although no accurate appraisal of their value has yet been made but overall the assets are believed to be worth more than NIS 500 million.
Published by Globes, Israel business news - en.globes.co.il - on June 2, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.
Israel Postal Co. Credit: Eyal Fisher