Government are exploring the possibility of eliminating consumer debts imposed on cellular companies

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by Ifi Reporter Category:Communication Sep 25, 2019

The crisis in the communications industry. Government ministries are exploring the possibility of completely eliminating consumer debts imposed on cellular companies to make it easier for them to cope with competition in the market. Today, companies are required, among other things, to operate a customer service center ten hours a day, provide technical service 24 hours a day, and are prohibited from offering customers a preferred service. Government ministry officials say these were relevant requirements at a time when there were three companies
Mobile only, but today companies can be allowed to compete for quality of service as part of free competition. The communications ministry said in response that office discussions had brought up quite a few ideas. At the same time, he does not intend to devise moves that would harm the public service.
At Cellcom, an understanding and breakthrough was achieved in the contacts between the employees and the management. It was agreed that the contacts would be renewed after the holidays and for an hour the layoffs announced by management were frozen. Cellcom intended to lay off up to 1000 employees. The committee intends to reach understandings on streamlining that will not include dismissal.
The Histadrut announced that there was a breakthrough in Pelephone's negotiations and that the parties had reached basic understandings. At Cellcom, the sanctions were frozen and the parties would enter into negotiations after the holidays. The parties reached fundamental understandings and outlines that would form the basis of the agreement. Alongside the formulation of an agreed retirement and streamlining plan, it was decided to cancel the hearings for all employees summoned for the holiday process, and to return from the decision to close the organizational unit to which they belong.
A framework was also agreed to continue the negotiations between the parties until the agreement is signed. Understandings include, among other things, a mechanism for settling disagreements, with a mutual commitment of the parties to avoid unilateral measures. Therefore, organizational steps will be discontinued and employees will return to regular work.
The committee has been negotiating with the company's management for a long period regarding the renewal of the collective agreement that ends at the end of the year, with the background of the synergy arrangement between the subsidiaries in the Bezeq group. Pelephone company.
On Thursday, the board launched a one-day general strike and workers began demonstrating in front of CEO Ran Guron earlier this morning. - 3 years ago and closing units in the company Pelephone, which employs about 2,500 employees, is required for extensive streamlining and downsizing in light of the declining cellular market situation.
At Cellcom, the parties have decided that sanctions will be terminated and negotiations will resume after the holidays in an attempt to find agreed solutions. Cellcom employees will return to regular work immediately.
On Monday, it was revealed that Cellcom is expected to lay off hundreds of employees under a comprehensive streamlining plan, which is expected to take effect immediately after Tishrei holidays. The layoff process is expected to take a few weeks or months and end in 2020. According to the plan, Cellcom's management will lay off 500 600 employees - about 20% of its staff, which includes about 3,000 people. This is an earthquake in one of Israel's largest cellular companies. The move should reduce the company's annual expenses by NIS 150 million.
It has also been reported that in an attempt to strengthen equity, Cellcom intends to raise NIS 400,500 million in fund raising, presumably in the issuance of rights. Cellcom's equity capital stood at NIS 1.63 billion at the end of the second quarter of 2019 and is worth NIS 835 million, after losing about 67% of its value since the beginning of the year.
In response to Stern's announcement of the expected layoffs, all Cellcom employees stopped their work yesterday, and the Histadrut declared a labor dispute in the company. This morning, the company's CEO, Nir Stern, wrote a letter to his employees, claiming that the shutdown yesterday was illegal and that he wanted them to return to the negotiating table.
However, the company's employees disabled network malfunction and the logistics center that affected the receipt and delivery of repair devices.

 

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