Employees at the Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) tablets factory in Jerusalem who will remain at the plant until it closes down at the end of 2019 will receive a bonus of 12 months of pay. The bonus has been agreed between the factory's workers committee headed by Itzik Ben Simon. The employees were represented by the Histadrut Leumit (National Workers Union).
The layoffs in Jerusalem are part of Teva's streamlining plan, which will see the company shed 14,000 employees, 25% of its workforce including 1,700 employees in Israel. In response, employees at the Jerusalem tablets factory, which was slated for closure, began striking earlier this month but called off industrial action after management agreed to delay some of the layoffs until later this year and others until next year. Under the terms of the agreement signed, 100 employees will leave the factory this year with the other 450 remaining on until the factory's closure next year.
In order to encourage employees to remain until the factory's closure, Teva will pay employees with more than 20 years at the company a bonus of 12 salaries. Employees over 50 with over 10 years at the company will receive a bonus of six salaries.
The streamlining plan has been introduced by Teva's new CEO Kare Schultz to help the company meet its debt of $34.7 billion as of the end of the third quarter of 2017.
Published by Globes [online], Israel business news - www.globes-online.com - on January 31, 2018
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