Arkia airline is in negotiation process with employees on wages cuts and layoffs

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by Ifi Reporter Category:Government Nov 6, 2019

 

Arkia airline is in the midst of a wide move of streamlining. The company, which was also hit by the closing of Sde Dov, is in an advanced negotiation process between management and employee representatives, as employees who hold 30% of the company's shares will likely have to reduce their wages, along with manpower cuts. Arkia has about 700 employees.
At the same time, a month after appointing former CEO Gadi Tepper as chairman of Arkia instead of Avi Nakash (according to Arkia, he decided to retire at age 74), the company is undergoing another change and, in its place, as chairman of the board of directors, Nakash Group CEO Avi Hurmero. Hurmero will also serve as chairman of the board, with Tepper, who left the company in 2014, serving as a board member.
Following the closure of the Sde Dov, a conflict broke out between Arkia's employees and the company's owners, after it was announced that Chairman Avi Nakash announced his intention to lay off about half the company's employees.
The closure of Sde Dov was a major blow to Arkia, which operates about 70% of the inland lines. The decline in passenger traffic is due to the transfer of domestic flights to Ben Gurion Airport. Until the last moment, Arkia management did not believe that Sde Dov would close, and there was no damage to the expected move that shook the domestic aviation industry. The lines from the Eilat center are set for Arcia as the profits are Every day and in light of the price of tickets on the line, with the fall in demand, Arkia cannot keep Volium on line.
Arkia also had to make changes to its international operations: It recently closed its line to Bangkok, which it inaugurated in July 2018. The company launched flights to India, Goa and Cochin, which, unlike the Bangkok line, are not operated by leased aircraft but by Airbus Neo A321 aircraft.
Now, as mentioned, the situation is urgent and requires efficiency. "It is necessary to formulate a deep efficiency agreement and bring the company to recovery," says Globes chairman of the Histadrut Transport Workers Association, Avi Edri.
A few months ago Arkia's management decided to retract the decision to dismiss 250 employees as a result of the closure of Sde Dov. The employees will return to regular work and receive full payment for the compulsory vacation days to which they were issued. The Histadrut, Arkia Employees' Committee and the Company's management will immediately enter into a negotiation process that will deal with the Company's recovery plan and its efficiency.
Arkia employees who were taken on compulsory leave will return to regular work as early as next Sunday, and will receive full payment for leave days (1-4.7.19).
Histadrut chairman Arnon Bar-David said, "The Histadrut will not accept unilateral procedures of dismissing workers without dialogue, all the more so when there is a signed agreement to transfer workers to Ben-Gurion Airport. I thank the Chairman of the Association of Transport Workers, Avi Edery, for their determination and striving to find a solution to the crisis, as well as to Arkia employees and their chairman, Committee Chairman Aliza Balish, for their steadfastness in the struggle for their employment security and their livelihood " .

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