Israel Chemicals Ltd. management decided today on a lock out of all production plants in Israel if company workers do not end their sanctions. The decision by the company’s board of directors followed sanctions initiated by the union on Sunday. Yesterday workers held a one day warning strike to protest against planned layoffs by management.
The workers prevented thousands of contract workers from entering the premises of the company’s Dead Sea Works subsidiary at Sdom. The Sdom plant is ICL’s largest subsidiary. Union workers at the company’s various subsidiaries decided Sunday to join forces and form one united committee to represent them in negotiations with management. They continued sanctions today and have threatened to intensify their actions in the coming days threatening to go as far as a general strike that would shut down all ICL operations.
Management also decided this afternoon that in light of the decision by the united committee not to negotiate that it would take unilateral action and begin implementation of a restructuring plan which includes the layoffs of 500 to 600 workers. Management said that it preferred to negotiate with the workers over the restructuring plan but would proceed if cooperation was not forthcoming. ICL reportedly plans to spread the layoffs over a period of three years. The management stressed in its statement that workers would not be allowed to enter any of the plants in the event of a lock out and salaries would not be paid.
The union charges that the real intention of management is to fire as many as one thousand workers or approximately 20 percent of its Israeli work force.
Last month the company announced a sharp drop in fourth-quarter and full-year net profit. For the fourth quarter, net profits totaled $119 million versus $208 million for the corresponding quarter in 2012. For the full year net profits totaled $819 million versus $1.3 billion in 2012.
As a result of the decline in net profits management said it would implement a restructuring plan. Initial layoffs involving 127 workers were announced earlier this year at the Rotem Amfert subsidiary, which handles the company’s phosphate and fertilizer production.