Haifa Layoffs Delayed; Government Promises Solution so that Haifa Can Return to Production

Haifa Chemicals workers have at least a three-week reprieve from mass layoffs. The company’s management has agreed to delay the layoffs for three weeks following pressure from the Knesset, Israel’s parliament. Last week the company announced plans to lay off about 800 workers and shut down production at its two plants in Israel .

Haifa Chemicals management acceded to the request of Knesset Finance Committee Chairman Moshe Gafni to postpone the layoffs and allow the Environmental Protection Ministry time to work out a compromise solution that would enable the company to resume production at its two plants in Haifa and Mishor Rotem. He said at a hearing that a solution must be found that would not endanger the public and still would allow the workers to return to their jobs. Gafni said he would initiate action against the company unless management agreed to the delay.

Meanwhile, Economy Minister Eli Cohen held a round of discussions with Environmental Protection Minister Zeev Elkin, Justice Minister Ayelet Shaked, and Haifa Mayor Yona Yahave to find a compromise solution that would allow a resumption of production at Haifa Chemicals. The emerging solution calls for importing large quantities of ammonia in ISO tankers.

Haifa Chemicals Chairman Jules Trump said he would accept any government solution that would allow the company to resume production. However, the company has said it would prefer importing ammonia using small vessels, and that there is an insufficient number of ISO tankers to enable the company to resume full-scale production. Haifa CEO Nadav Shahar said there is no fertilizer company that works with ISO tankers. He said that at least 200 would be needed just to supply the southern plant at Mishor Rotem.

In a related development, Haifa Chemicals has found a new technique that would enable the company to empty the ammonia storage facility to meet the Supreme Court-ordered Sept. 18 deadline for emptying the tank.

The Israeli government is also considering legislation that would enable the government to bypass local authorities in the event of licensing issues for infrastructure projects. In the case of Haifa Chemicals, this would give the government the right to give the go-ahead for the use of ISO tankers and/or a pipeline for the delivery of ammonia.