Histadrut threat prevents personal contracts at Ashdod Refinery

After the Histadrut sent a sharply worded letter to Paz Ashdod Refinery’s management, Paz withdrew the plan.

A power struggle has erupted between management and the workers at Paz Ashdod Refinery Ltd., six months after Paz Oil Company Ltd. (TASE:PZOL) acquired it for NIS 3.5 billion. Sources inform ''Globes'' that the Histadrut (General Federation of Labor in Israel) recently threatened to declare a labor dispute at the refinery, after workers accused management of trying to hire new employees under personal contracts, which they claim violates the company’s collective labor contract.

After the Histadrut sent a sharply worded letter to Paz Ashdod Refinery’s management, Paz withdrew its plan to hire employees under personal contract, and the dispute ebbed.

Paz said in response that the company is committed to the agreements signed with the workers. “Labor relations between management and the workers committee are conducted properly for the resolution of problems that crop up. There is dialogue between management and the workers committee.

Published by Globes [online], Israel business news - www.globes.co.il - on April 5, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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