Restructuring plan causes static at Israel Electric

The Israel Electric workers committee is concerned that 2,500 workers will lose their jobs if the plan is implemented.

electricity 88 (photo credit: Courtesy)
electricity 88
(photo credit: Courtesy)
Israel Electric workers prevented company executives from entering their offices on Monday to protest management's decision to implement a restructuring plan. On Sunday, IE presented a restructuring plan that includes organizational measures and streamlining of its workforce over the next two years. The plan was unveiled in spite of a breakdown of negotiations with the workers committee over the measures. The committee is concerned that 2,500 workers will lose their jobs if the plan is implemented. "It is no secret that the Israel Electric workers committee has had too great of a role in the company's management for years," IE CEO Amos Lasker said Sunday at a press conference in Tel Aviv. "It cannot be that management bears both the authority and the responsibility, while the workers committee bears no responsibility. The time has come for the management to manage the company and for the workers committee to take care of workers' rights." "The measures announced by the management on Sunday will not hurt workers, and therefore the steps taken by the workers committee are not clear," he said. "Workers who won't do what their supervisor wants will be sent home without pay." Lasker said IE wants to decrease the company's workforce by 500-600 employees in 2009 and by 1,000 employees by the end of 2010. IE management has been working on a modified restructuring plan that includes half of the workforce reduction measures compared with the original plan, he said. Lasker said the company would ensure regular electricity supplies despite interruptions.