Israel Chemicals Ltd. has agreed to freeze planned layoffs at Rotem Amfert and resume negotiations with the Histadrut Labor Federation on a recovery plan for the subsidiary. ICL had announced plans to layoff 127 workers at Rotem Amfert. In exchange for the agreement the Histadrut called off a planned protest meeting by all unions at ICL. Histadrut Chairman Ofer Eini had convinced workers at Dead Sea Works to join the dispute. So far they have stayed clear of taking any action following the announcement last month by ICL management of a restructuring plan.
The change in management’s position followed a lockout at the Rotem Amfert plant in the Negev on Monday when initial dismissal notices were handed out to some of the workers. The following day Rotem Amfert management imposed a lock out. Late Tuesday the Histadrut and ICL management reached agreement on a return to the negotiating table.
ICL management has said that it must cut back costs at Rotem Amfert charging that Morocco is cutting prices in an attempt to drive rivals out of the market. A spokesman for Rotem Amfert said earlier this week that the company is facing its worst crisis in years due to a sharp drop in phosphate and fertilizer prices that have made the company among the least competitive in the industry. The spokesman added that the layoffs are a painful but necessary measure to enable the company to compete on the international market.