Sanctions are now entering their fourth week by workers of Dead Sea Works. The action by the company’s union has led to a total stoppage in potash production at the company’s Sdom plant. Israeli sources said that all shipments have been halted.
The strike began after negotiations broke down between the union and management over a new wage agreement. The management noted that Dead Sea workers are among the highest paid in Israel. Negotiations between the parties have been ongoing in recent weeks, but little progress has been reported. The union is demanding an increase in wages, as well as participation in the management of the company. The Beer Sheba Labor Court instructed the workers not to shut down the chlorine facility at the plant, which is crucial for the operation of Dead Sea Bromine, another subsidiary of Israel Chemicals.
The strike is only affecting Dead Sea Works and not any of the other production plants in the ICL Fertilizer division. ICL Fertilizer also produces phosphate rock, phosphate fertilizers, phosphoric acid, and specialty fertilizers. Earlier the week of Jan. 24, workers threatened to intensify their strike by calling for sanctions at other ICL Fertilizer plants.
The shortage of potash has forced the shutdown of operations of Haifa Chemicals. The world leader in potassium nitrate, Haifa operates two plants in Israel. Dead Sea Works is the sole supplier of potash to Haifa, which uses 350,000 mt/y. An ICL spokesperson said the company had shipped Haifa potash from its inventories at the country’s ports in recent weeks. Haifa management warned of potential huge losses from the forced shutdown of operations.
Haifa reduced production levels earlier this month after the strike at Dead Sea Works began, according to market sources. The smaller quantities of potash received from the ports have dwindled, and with the amounts now too small to continue production, in the past few days both plants have been totally shut down and all production has been halted. The market sources said this would impact the company’s exports, as this is currently the peak demand period for potassium nitrate and other fertilizers in all major markets. Sources said that Haifa is caught in the middle of this and really has no other option, as importing potash is not feasible.