The Histadrut clarified to the pilots: will not allow EL AL to fall and will try to prevent huge layoffs

Posted on Jul 15, 2020 by Ifi Reporter - Dan Bielski

Dramatic development in negotiations on EL AL's efficiency plan: The Histadrut clarified to the pilots 'committee that it will not allow EL AL to fall and will not take responsibility for the loss of thousands of jobs if the pilots' committee refuses to comply with the company's management's requirement to sign the efficiency plan. Will result in savings of $ 110 million per year in company expenses, through the dismissal of 150-70 pilots and a 25% -35% cut in the salaries of pilots who will not be fired.
The meeting between the pilots' committee and the heads of the Histadrut, chaired by chairman Arnon Bar-David and Avi Edri, chairman of the Transport Workers' Union, exploded after the committee refused to sign the efficiency plan as presented to it - because its heads plan would effectively cut pilots' salaries by 60%.
Negotiations between the Histadrut and the management and the pilots' committee are taking place against the background of a meeting of El Al's board of directors to be held today (Wednesday). Set by the Ministry of Finance to provide a 75% state guarantee for a loan of $ 250 million, which the company will receive from Discount Bank.
According to the estimates of the directors of El Al, they have received legal advice regarding their personal responsibility to minimize the extent of the damage that will be caused if the company becomes insolvent. El Al is expected to go bankrupt in a short time if it does not receive the state-guaranteed bank loan, given its obligations to ticket buyers whose flights have been canceled, losses from jet fuel hedging and interest payments and payments to aircraft leasing companies and banks that lent money to purchase aircraft.
A unilateral signature by the Histadrut on behalf of the pilots' committee may cause the company's pilots to move to another Histadrut and claim that the Histadrut no longer represents them, thus disrupting El Al's ability to present signed agreements with the four committees in the company.


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