Six hundred employees of Hadera Paper Ltd., a subsidiary of IDB Holding Corp.
Ltd., controlled by Chairman Nochi Dankner, closed the factory gates Monday and
launched a strike, three weeks after declaring a labor dispute. The employees
are protesting a series of unilateral pay cuts by management, due to the
company’s losses in the first quarter.
Hadera Paper workers Committee
Chairman Adi Hananov told Globes, “We had no choice but to
Hadera Paper said in response: “Four hundred of the company’s
3,200 employees illegally blocked the entrance to the factory. Problems with the
natural gas supply have necessitated cutbacks, which began with pay-cuts to the
CEO and executives and the laying off of temporary workers. The 400 striking
employees were asked to forgo a 2.5 percent salary increase [not a pay cut] but
Hadera Paper posted a net loss of NIS 1.6 million for the
first quarter, compared with a net profit of NIS 41m. for the corresponding
quarter of 2011. Two weeks ago, in a notice to the TASE, the company said that
it had decided to fire 120 of its 3,200 employees, more than half of them from
the company’s main premises at Hadera.
Some of the fired employees were
temporary workers. All of the fired employees had personal contracts, and the
company’s management was not required to conduct negotiations with the workers
committee regarding the lay-offs.
In that announcement, Hadera Paper
estimated that the layoffs would save NIS 20m. a year, and that it did not
expect to report a provision for them in its financial report.
Paper is a subsidiary of IDB holding company Clal Industries and Investments
Ltd., which is due to be sold shortly to Len Blavatnik’s Access Industries Inc.
of the US.
Hadera Paper’s share price fell 1.7% by mid-afternoon to NIS
137.60, giving a market cap of NIS 700m.