El Al fires 200 workers
El Al Israel Airlines Ltd. today announced that it is firing 200 non-tenured workers and employees with personal contracts, and making structural changes.
El Al CEO Elyezer Shkedy said, "For a long time, El Al has been dealing with the difficulties faced by the global aviation industry in general, and in Israel in particular. The company is committed to continue streamlining to adjust its operations to the changing market conditions. We are therefore forced to announce the termination of the employment of 200 non-tenured employees and employees with personal contracts. The need to streamline and cut costs is critical in order to continue dealing with the challenges and growing competition. We are doing this with a heavy heart and in the hope that the measure will strengthen El Al."
El Al added that it would continue talks with the workers committee and the Histadrut (General Federation of Labor in Israel) to renew the labor contract, and on other streamlining measures, in order to cut costs and improve administrative ability to be commercially competitive.
Two weeks ago, First Israel Mezzanine Investors Fund, run by CEO Ishay Davidi announced that it was in advanced talks to join El Al's controlling core alongside Knafaim Holdings Ltd., controlled by the Borovich family. The deal will be made in stages, including an initial $5 million investment for 5.7% of El Al and the purchase of $5 million worth of shares from Knafaim. A deal is subject to El Al signing a new labor contract with the union.