Histadrut chief and Teva boss agree to negotiations on planned layoffs

Petah Tikva-based Teva Pharmaceutical Industries recently announced plan to fire 5,000 employees worldwide.

By JOHN BENZAQUEN
October 15, 2013 20:05
1 minute read.
Histadrut chair Ofer Eini at Labor Court

Histadrut chair Ofer Eini at Labor Court_311. (photo credit: Marc Israel Sellem)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

Ofer Eini, chairman of the Histadrut labor federation, and Jeremy Levin, president of Israeli pharmaceutical giant Teva, agreed on Tuesday that planned employee layoffs at the company would be frozen.

Layoffs would be carried out only following an agreement between the company and the labor federation, they said.

Eini said that there would be negotiations with the Petah Tikva-based Teva Pharmaceutical Industries in which the number of employees to be laid off would be decided.

Teva last week announced a planned wave of dismissals that could see up to 800 people in Israel lose their jobs. The company said it would fire 5,000 employees worldwide, a 10th of its workforce, as part of “steps to accelerate the reduction of costs and to optimize its structure and processes.”

Most of the layoffs would be completed by the end of 2014. Nearly all of Teva’s employees in Israel are members of the Histadrut.


At a press conference Eini called ahead of the meeting on Tuesday, he told reporters that he received a phone call from Finance Minister Yair Lapid on Monday evening, who told him that he “saw eye-to-eye” with the union chief on his opposition to the Teva firings. Lapid expressed the hope that by joining forces they could prevent this measure from coming into effect, Eini said.

Eini told reporters it was incumbent on the government to reinstate a clause in the Law on Encouragement of Capital Investments that restricts the dismissal of employees by a company receiving tax exemptions from the state.

“There’s no doubt that Teva is a successful company,” he said. “It’s a company that makes billions, and I am confident that at the end of the process we will be able to safeguard Teva employees and ensure that the company stays strong.”

Lapid said on Sunday that he had spoken with Levin and that the two men had agreed upon a channel of dialogue. The finance minister stressed that the tax breaks that Teva enjoyed in Israel required it to take note of the Treasury’s demands.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS

Cookie Settings