Teva agrees future of Abic Netanya with workers

Teva Photo: Tamar Matsafi

Employees at the site will be offered voluntary retirement on enhanced terms.

The Histadrut (General Federation of Labor in Israel), the workers committee at the Abic pharmaceuticals plant in Netanya, and Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) have reached agreement on the future of the site. This follows agreements with workers at Teva's Petah Tikva headquarters and at its site in Jerusalem that were foremost in the list of cuts and closures in the company's restructuring plan announced a month ago. The labor dispute declared by the Histadrut at the Abic plant has been cancelled.

Employees in drug research and development at Abic Netanya, as well as other employees employed under the collective labor agreement at Abic, will receive enhanced severance terms, beyond those stipulated by law.

Until the end of this month, all Abic employees, about 300 altogether, will be able to request to leave voluntarily and receive the enhanced terms agreed with the management. Teva says it will treat each such request in the light business considerations.

Following the voluntary process, the management will if necessary enter into dialogue with workers' representatives on employees who will be asked to leave. These workers too will receive substantial severance pay, and assistance in finding new employment.

In addition, workers employed in research and development of innovative drugs at Teva's site in Rehovot will over the coming year be transferred to Abic Netanya, as will employees in the pharmacovigilance unit in Petah Tikva.

Teva's restructuring plan calls for its worldwide workforce to be reduced by 14,000.

Published by Globes [online], Israel business news - www.globes-online.com - on January 15, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Teva Photo: Tamar Matsafi
Teva Photo: Tamar Matsafi
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