Eilat Port Management Sparks Outcry with Proposed Layoffs Amidst Ongoing Crisis

The port of Eilat finds itself embroiled in controversy as management announces plans to terminate approximately half of its workforce, affecting 60 port employees. The decision comes amidst ongoing challenges faced by the port, prompting outrage among workers and union representatives.

Since its acquisition in 2013 by the Nakash brothers through Papo Shipping, the port has been navigating turbulent waters. The recent downturn in activity, exacerbated by threats from the Houthis in Yemen and subsequent attacks on ships, has led to a staggering 80% drop in income within a month. Despite this, management had previously refrained from resorting to layoffs or unpaid leave for employees.

The situation reached a boiling point in December when a labor dispute surfaced due to stalled negotiations on a collective agreement for port workers. The port, which primarily handles bulk export and vehicle imports from the East, saw a significant decline in vehicle imports, with no shipments recorded since the start of 2024.

Attorney Eyal Yadin, Chairman of the Histadrut Transportation Workers' Union, condemned the proposed layoffs, emphasizing the dedication and contribution of port workers to the company's success over the years. Yadin criticized the management's decision, stating, "For many years, the valuable and professional port workers have boosted the port's results and created fat dividends and bonuses for the shareholders and the port management."

The port's management, headed by director general Gideon Gulber, faces mounting pressure to reconsider its stance amidst growing unrest among employees. With workers slated to gather for an informational meeting tomorrow to protest the decision, tensions at the port of Eilat continue to escalate.