El Al: 1,300 maintenance and administrative employees will be laid off or will voluntarily retire

Representatives of the maintenance and administrative staff signed new employment agreements with the company, joining the stewards he had signed two weeks ago. Under the agreement, about 1,300 employees out of about 4,300 who belong to these two committees will be laid off or will voluntarily retire. The company is expected to save $ 88 million a year.
The signed agreements will be valid at the same time and for the duration of the loan, which will receive El Al of $ 250 million and the agreements will encompass approximately 3,000 administrative and 1,300 maintenance and engineering workers. In total, according to the recovery agreement, El Al is expected to leave 2,000 employees out of 6,000.
According to the agreement between the parties, the workforce in both sectors will be reduced, with some employees being offered an early retirement mechanism under favorable conditions and another - an increased compensation mechanism. In each of the sectors, streamlining mechanisms will be implemented in their unique activities, such as moving to digital work, streamlining work procedures and more.
The moves included in the agreements will enable the company to streamline $ 52 million in annual administrative sector operations, and maintain the $ 36 million per year in the maintenance sector. Execution of the agreements is contingent on a loan agreement that is to receive the company and the issuance of shares to the public.
Under the recovery plan, 2,000 of the company's 6,000 employees will be laid off, cuts to up to 20% in workers' wages, various welfare activities and benefits such as free tickets abroad and more will be eliminated. If he signs.
The pilots have so far demanded for concessions such as layoffs of 110 pilots and salary reductions, receive compensation such as options to be exercised for shares in the future, when asked to return to profitability or other compensation, a requirement not met by management.
Histadrut Chairman Arnon Bar-David said in signing, "We have taken another significant step to ensure El Al's continued existence. I want to strengthen the committees for discovering responsibility at such a significant time for the company and for being committed to its rescue. "
El Al's CEO, Gonen Ussishkin, commented: "The agreement signed is another step on the road to El Al's recovery."