Last update - 00:00 13/03/2008
Histadrut: Fired Polgat workers get the compensation they deserve
By Haim Bior, Haaretz Correspondents
The National Labor Federation on Thursday reached an agreement with apparel company Begir under which the firm would compensate 296 recently laid off employees of the Polgat textile factory, a subsidiary of Begir.
Under the agreement, Begir will be required to pay an initial round of compensation to workers when the Polgat factory near Kiryat Gat is demolished. The company will also be required to place $600,000 into a trust fund to be used to pay the second installment of compensation.
The agreement stipulates that all compensation to employees will be paid by the end of this May.
The employees will also receive an additional payment from the National Insurance Institute.
National Labor Federation Head Ofer Eini stated that the federation had helped the former employees "attain the economic benefits they deserve."
Eini added that it is "saddening to sign an agreement that came about because of the closing of a factory, especially one located in the periphery."
Polgat Textile on Monday filed for liquidation at the Beer Sheva court, citing insolvency.
The company's motion to the court cites an equity deficit of $4.6 million, a working capital deficit of $4.3 million and a loss of about $5 million for the first three quarters of 2007. Polgat says its competitive edge was destroyed by the dollar's dive against the shekel and the surge in production input costs.
Related Article: