Network 13 News Company Reaches Agreement with Employees - Plans to Appoint New CEO

The Network 13 News Company management has signed a cooperative agreement with its employees, which stipulates that pending approval by the board of directors, the company will appoint a new CEO within two months. During the interim period, the company's acting chairman, Aile de Pau, will serve as acting chairman. Additionally, board member Zvi Hefetz, representing network owner Len Blavatnik, will be appointed active director and deputy CEO of News 13 without salary to assist in implementing the plan.

The agreement was signed by network CEO Emiliano Kalmzuk, Chairman of the 13 News Workers' Committee Matan Khodorov, and CEO of the Journalists' Organization Eli Gershankeruin. It includes a memorandum of understanding aimed at increasing cooperation and strengthening the channel for the benefit of shareholders, viewers, and employees.

Upon the News 13 board of directors' approval of the agreement and the replacement of the CEO, the company's employees and the journalists' organization will inform the High Court of the settlement and request the deletion of the petition against the appointment.

In a joint statement, the network and its employees expressed gratitude to the controlling owner, Len Blavatnik, for his longstanding support of the channel and his role in resolving the dispute. Matan Khodorov, chairman of the committee at News 13, commented, "I thank Emiliano for his cooperation and look forward to the approval of the agreement by the public representatives on the board. I hope the new appointment process will open a new chapter in the relations between the employees and the network, allowing us to focus on strengthening the screen of Channel 13 and News 13 for our hundreds of thousands of viewers."

Budget Framework and Future Negotiations

The parties also agreed that Reshet would determine the budget framework for the news company for 2025, with employees committing to accept it and conduct negotiations with the permanent CEO on its implementation.

High Court Involvement and Potential Financial Implications

Last week, a panel of three High Court judges issued a conditional order to the network and the Second Authority, demanding explanations for why the decision to appoint Shmalov-Berkovic should not be revoked and why the Second Authority should not instruct its appointed public representatives on the news company's board to follow a proper procedure for selecting a manager and editor. The government’s legal adviser was given three months to present a position on the matter.

Following the High Court's decision, which favored the employees, the network's management faced a dilemma: accept the court's decision and withdraw from the appointment or wait for the High Court's final decision, expected no earlier than 2025. Withdrawing Shmalov-Berkovic's appointment would obligate Reshet to pay her a salary for two years, estimated at around NIS 2 million, in accordance with her contract. The agreement on her appointment was based on a salary of approximately NIS 80,000 per month.