layoffs of workers of the Teva plant in Ashdod have been suspended

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by Ifi Reporter Category:Law Apr 29, 2018

For the time being, layoffs of workers of the Teva plant in Ashdod have been suspended. The Be'er Sheva Regional Labor Court ruled that Teva's management, the employees' committee and the Histadrut should initiate a process of deliberation, and until then the layoffs would be delayed. The next court hearing will take place in another month and a half.

The Histadrut appealed to the Be'er Sheva Regional Labor Court to cancel the dismissal of dozens of workers at the Teva Medical plant in Ashdod and to postpone any further steps to close it before negotiations with business entities seeking to acquire the plant are completed.
 The Histadrut accused the Teva management of bad faith in negotiations with the Histadrut regarding the Ashdod plant, while "shutting down" the workers' representatives and taking steps to shut down factories in Israel. "Teva's conduct regarding the Ashdod plant," the request stated, was done in bad faith.
 In December, Teva announced the closure of a series of factories in Israel and the dismissal of hundreds of workers due to the crisis it encountered. However, regarding the plant in Ashdod and the plant in Kiryat Shmona and the facility in Shoham, the Company undertook that these three facilities of the Company will not be closed, and that an attempt will be made to sell them in order to continue their operation and continue employment of the employees.
 On the eve of Independence Day, surprisingly, the company's management informed the workers and the media that "no buyer" was found for the Ashdod plant and therefore will be closed. Concurrently with this announcement, the Histadrut contacted potential buyers and announced that the company's management had ignored their requests - and in fact did not try to contact them at all.
Teva anounced a few weeks ago it is planning to close its Ashdod plant in about a year and one hundred seventy-five workers will be laid off. The company's management informed the workers this morning that it had not been able to find a buyer for the plant and therefore decided to close it. Eighty-five workers will be laid off in the next few months. The rest of the factory employees will be dismissed upon closing.The factory in Ashdod produces infusion bags, liquid medicines and disinfectants. Their production will be transferred to the plant abroad. Teva's management explained that the decision regarding the Ashdod plant is regrettable but unavoidable because part of its activity is not related to Teva's core areas, and because the production of the IV bags, which is about half the total activity in the plant, is not profitable at all.Teva and Celtrion were rejected by the FDA for 2 key biosimilars.The companies filed biosimilars of Rituxan for inflammatory diseases and certain blood cancers, and Herceptin for breast and gastrointestinal cancer with the FDA last year.

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