El Al board of directors: If no agreement is reached tomorrow morning they will file for bankruptcy

"If no agreement is reached with EL AL pilots by tomorrow morning or a breakthrough is not achieved, the board of directors of Elal will have to discuss tomorrow a request for receivership," a senior Histadrut official told Calcalist. A senior official on the board of El Al confirmed this and said that the board would be obligated to discuss the matter according to the legal advice it received. However, he clarified that "there is no certainty that a decision on the conference will be made tomorrow."
According to the board, it is obligated to reach an agreement with the pilots by tomorrow, as in the coming days El Al is expected to repay substantial payments to creditors. The board of directors claims that without the assistance that the company will receive, it will not be able to meet these payments, and will in fact reach insolvency.
Ministry of Finance officials conditioned the state's assistance to El Al on the company's management signing new employment agreements with its four workers' committees. According to the state, these must include painful cuts in manpower and wages. It is worth noting that so far all the committees in the company have signed agreements, with the exception of the pilots' committee.
In the last two days, two meetings have been held between Elal's management, the Histadrut and the pilots' committee in an attempt to reach an agreement. At the end of the meeting yesterday, the pilots were asked to submit an alternative proposal that will be discussed between the parties tonight.
The Histadrut hopes that the agreement will be understood by the parties, but if the agreement is not reached during the night, and the Histadrut does not sign it on behalf of the pilots (a faint but theoretical possibility), Elal's board, according to the legal advice it received, will have to meet tomorrow. .
The pilots are required to make $ 110 million in concessions over a five-year period (the duration of the state-guaranteed loan repayment he was asked to receive). Among other things, the pilots are required to lay off more than 100 of them, as well as wage cuts of 25% -30%. According to the pilots, in an agreement with the maintenance committee, it was agreed to reduce wages by only 1%, and most of these employees' contribution to the company's recovery was in agreement to dismiss hundreds of maintenance workers and waive various benefits.
A source close to the negotiations between the parties said that "the gaps between the pilots and El Al are in the order of tens of millions." The Histadrut was optimistic about the chance that an agreement would be reached between the parties in the next day.