“My father, may his memory be blessed, taught me that if you go into a bakery to buy a loaf of bread, you should ask for the whole bakery. In the end, maybe you will get a loaf of bread. So we are asking for the whole bakery, and we’ll see what comes of it. It’s true that we are not demanding all of Tnuva, but we are demanding a worthy share that expresses Apax’s gratitude for the return of the company to handsome profits they enjoyed by its employees. The employees increased the company value, and, therefore, they deserve a share of the bounty,” said Tnuva Food Industries Ltd. workers committee chairman Ahiav Simhi, regarding the workers’ demand to receive compensation for the sale of control of Tnuva to the Chinese government's Bright Food Group.
Simhi is also sending veiled threats to Apax that it would be best to reach an agreement with the workers soon, before the workers take action.
Under the terms of the agreement with Bright Food, it is stated that Apax must reach an agreement with the workers within three months, but, according to Simhi, “We have no time to wait three months, rather a few days - a week. They have agreed to give us crumbs. I told them that I don’t have a lot of time, and if we don’t resolve this within a few days, they will see the less-nice side of me. We have enough power and the tools to make them understand.”
What are crumbs?
“In the previous agreement to sell Tnuva, the average was five salaries for each worker, but the formula was different, and it accounted for the worker’s seniority and salary. It was over NIS 100 million. This time, we are demanding no less than this, for starters. Let’s just say that Apax opened the talks by offering us two salaries, and that’s not right. That comes to barely NIS 30 million. We are negotiating and it is not simple, and not easy.”
Apax is coming out of Tnuva with NIS 4 billion profit, and no tax. Why are they negotiating aggressively with you?
“Because. They want to keep the money for themselves. I am not bothered. What the workers deserve, they will receive by hook or by crook.”
In a week, if you don’t reach an agreement, will there be sanctions?
“Let’s talk in a week.”
Tnuva management declined to comment on this report.
Published by Globes [online], Israel business news - www.globes-online.com - on May 22, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014