The workers at Dead Sea Works have intensified their sanctions and halted all potash shipments from the Sdom plant. The move was in response to a decision by Israel Chemicals Ltd.’s management to summon 135 workers in advance of their being laid off. The layoffs are part of a reorganization plan being implemented by ICL management.
In recent weeks, workers have reduced shipments as part of sanctions imposed with the backing of the Histadrut Labor Federation to counter plans by ICL to implement its reorganization plan. The DSW said that 135 workers received notices yesterday and in response all shipments of potash out of the plant were halted.
Late last week ICL threatened a lock out if the ongoing sanctions continue. The company has yet to receive approval from Israel’s Economics Ministry to go ahead with the shutdown of the plant, one of the largest potash facilities in the world.
ICL has accused the union of dragging its feet in the negotiations to implement the reorganization plant. Management said that it is being forced to downsize as part of its strategy in light of the recommendations of the government appointed committee on taxation of the natural resources sector. In November, Israel’s Economic Cabinet approved the recommendations which are expected to increase the government take from minerals and will lead to the country’s largest chemical maker paying $110 million annually in additional taxes.
Meanwhile Haifa Chemicals, the world’s largest producer of potassium nitrate, said it has been forced to shut down its two plants at Mishor Rotem and Haifa due to a shortage of potash supplies from ICL.
Haifa Chemicals is totally dependent on ICL’s subsidiary Dead Sea Works for potash supplies. Haifa workers demonstrated today in front of the ICL headquarters in Tel Aviv demanding a resumption of potash shipments. The Haifa union leader Eli Elbaz charged that ICL is using Haifa workers as hostages in their dispute. He said the company’s 600 workers take unspecified action to restore potash shipments.
Haifa management noted that ICL holds a monopoly over a large part of Israel’s natural resources and has continued to supply foreign and even other domestic customers the necessary raw materials. The management said it had demanded an investigation by Israel’s Anti-Trust Commissioner David Gilo of ICL’s actions and specifically in regard to the use of its monopolistic power and its adverse impact on Haifa Chemicals.