The three-and-a-half month strike at Israel Chemicals Ltd. (ICL) ended on May 28 after the signing of an agreement between ICL management, the unions, and the Histadrut Labor Federation. The 2,000 striking workers at ICL’s two subsidiaries – Dead Sea Works and Dead Sea Bromine Compounds – returned to work on May 29.
Under the terms of the agreement, 38 workers in total will be fired from both subsidiaries, far lower than the initial number management had demanded. The agreement stipulates, however, that all 38 will be given a chance to prove themselves and their layoffs could be reconsidered. In addition, 100 workers above the age of 55 will be given early retirement in addition to the 100 that have already opted for this. Management also agreed that there would be no further layoffs at the two companies in the next three years. All those let go will be given a generous severance package.
Histadurt Chairman Avi Nissenkorn said the agreement was good news for the workers, but said no side had won since a strike of this length is a loss to all. The union leader apologized to Idan Ofer, the billionaire businessman who holds the majority stake in ICL, for comments and signs that were derogatory towards him during the strike.
ICL CEO Avner Maimon said the company has gone through a difficult period in recent months, and will have to go through a difficult process of restructuring in order to improve efficiency.
The strike, which began in early February when 140 workers at Dead Sea Bromine Compounds were summoned by management for dismissal, was one of the longest in Israel’s history. Earlier this month, ICL reported that the strike had led to a $200 million drop in revenues in the first quarter of 2015 and a $76 million drop in profits.
Potash sales during the first quarter fell to $377 million versus $491 million last year, while production fell to 834,000 mt from last year’s 1.270 million mt. Total potash sales in the quarter were 1.141 million mt versus 1.467 million mt last year. Inventory dropped sharply in the quarter, falling to 607,000 mt compared with 929,000 mt last year.
The strike is also expected to have a strong impact on ICL’s second quarter results, possibly even more than the first quarter. Industry analysts noted that it will take weeks for the plants that were closed to rev up their production.