Emilia Cosmetics factory in Yeruham will be closed: 80 employees will lose their job


by Ifi Reporter Category:Financial Jun 16, 2022

Sad end to the Emilia Cosmetics factory in Yeruham: after it already seemed that they had managed to save the factory - it was decided to close it. The factory currently employs about 80 workers and the management has formulated a conditional agreement with another company operating in the field that may allow workers to find alternative work.
The factory said that despite the streamlining measures taken at the factory, the rise in input prices and increased competition with manufacturers from abroad and the move to imports led to the decision.
A report to the TASE states that "the decision to close the business was made in light of Cosmetics' ongoing losses in its operations, both in Israel and in the US, which are mainly due to increased competition in the field, competitor imports and barriers, and rising raw material prices and production inputs. The board of directors of Cosmetics does not expect this trend to improve in the foreseeable future. "
Management notes that "the end of the activity in the field of cultivation in Israel is expected to occur on July 17, 2022 and the end of the activity in the field of cultivation in the United States is expected to take place shortly thereafter."
The chairman of the factory workers' committee, Yigal Hazot, said that "there are about 80 workers in the factory. Today we received notice of the closure of the old factory in Yeruham. We think we should have talked to them first. We are considering the continuation of our path. The factory management did not update us. It came to us in a boom. Inform that we are going home but no one assures us that the factory they are talking about will take our workers to it. Currently from the 15.7 date we are out of work. The procedure was also quick. "One day they also announced the closure and we also received a letter of dismissal."
The head of the Yeruham Council, Tal Ohana, said that "we were prepared in advance for this scenario. Fortunately, in the coming days there will be interviews for employees, residents of Yeruham, our successful pharmaceutical factory and the insurance agency he opened in Yeruham, Udi Dagan. "More, at a higher salary, alongside professional training for which we are funded. My heart goes out to the workers who have dedicated their beautiful years to its success. Past experience shows that new beginnings bring with them growth opportunities."
In recent years, factory workers have moved between despair and hope. Thus, in May 2019, the company's board of directors decided to close the plant "in light of negative trends that characterize the recent period and are in a worsening trend in recent months, which caused an erosion in the operating profit of the Yeruham site and a loss." A few months later, in November, a solution seemed to have been found for continued operation and the workers could breathe a sigh of relief. This, when a new collective agreement was signed between the Histadrut and the management. Today, as mentioned, the management again reported on the closure of the plant.



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