Israel Chemicals Ltd. subsidiary Rotem Amfert has given notice to 127 workers of their impending layoffs as part of the company’s reorganization plan. The head of the Rotem Amfert union said that the dismissal notices were without prior notice and were counter to the wage agreement between management and the union. He charged management with attempts to sow an atmosphere of terror.
Earlier this month ICL reported that operating profit in its phosphate fertilizer sector was down sharply in the third quarter. ICL said that operating profit was approximately 5 percent or $22 million out of $421 million in revenues, down from 12 percent in the third quarter of 2012 or $52 million out of $436 million in revenues. The decline was due to lower demand for phosphate fertilizers in India and increased competition which led to lower prices.
Just days before the third quarter results were announced ICL said it planned to lay off 130 workers at Rotem Amfert as part of an effort to cut costs. ICL said that it hoped to propose early retirement to 100 long-time workers and reduce by another 30 the manpower levels at the company which has three plants in southern Israel which currently employ 1200 workers.
An ICL statement said that the company had swung into losses due to high production costs which are substantially higher than those in Morocco, Kazakhstan, Russia and Saudi Arabia. The statement went on to say that Rotem Amfert is facing one of the worst crises in recent years.