The Histadrut labor federation on Thursday secured an agreement with Hadera
Paper Ltd. to secure the jobs of 250 employees, who had been slated for
In the agreement signed after two weeks of intense negotiations
peppered with strikes, the company and workers agreed instead to cut
In addition, 28 voluntary retirements look to help narrow the
ranks somewhat, but the firm promised to avoid layoffs for three
“I praise the worker’s union and management for their
responsibility and am glad that hundreds of families will not enter the cycle of
unemployment, and [that] their income has been rescued,” said Histadrut Trade
Union Division chairman Avi Nissenkoren, who is expected to become the union’s
Workers who earn below NIS 10,000 are to have no salary
change. Those who earn between NIS 10,000-15,000 are to see a 2.5 percent drop
in their salary, between NIS 15,000-25,000 a 5% cut and for those over NIS
25,000 an 8% reduction. Employees had originally demanded to keep their 4.5%
automatic pay increases plus bonuses, a position to which the management had
responded with threats of layoffs.
Salary increases would be postponed
“I hope the concessions made by all the workers at the Hadera
site will help the company face the competitive paper market in an optimal way,”
said Hadera Paper CEO Ofer Bloch.
The publicly traded firm, which is
owned by Clal Industries, reported a third-quarter loss of NIS 61.2 million
after significant losses in the first and second quarters of the year.
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