Subscribe to Print Edition | Fri., May 23, 2008 Iyyar 18, 5768 | | Israel Time: 03:32 (EST+7) web haaretz.com   Back to Homepage Rosner's Domain Diplomacy Defense Jewish World Opinion National Print Edition Advertising Books Peres Conference Business Real Estate Easy Start Travel Week's End Anglo File

Hard times at IDT has immigrant groups scrambling By Daphna Berman Call center was once a favored employment spot for Anglos, who now must look elsewhere Aliyah organizations are reporting a sharp rise in the number of unemployed immigrants seeking job counseling services, following the drastic cutbacks and potential closure of IDT Global Services, one of the Israel's largest employers of native English-speakers. Pink slips have shrunk the 900-strong work force of the Jerusalem-based call center, which also has branches in Tel Aviv and Beer Sheva, by as many as 200 employees, though the exact figure is impossible to confirm. The result is that immigrant advocacy groups are now handling what they describe as a "steady stream" of recently unemployed immigrants who are embarking on what can be a frustrating - and in this case, unanticipated - job search. "There are a lot of people who have been fired and now need to jump back and join the Israeli workforce," said Josie Arbel, director of absorption services at the Association of Americans and Canadians in Israel (AACI). "It's unclear if IDT is going to close altogether or if this is a temporary setback. People are definitely worried." The solution is simple but painful Advertisement Immigrant organizations are now gearing up to help address the new reality. The AACI, for example, is hosting a workshop it put together recently for the newly unemployed. The May 26 meeting comes thanks to counselors identifying a need to address issues such as severance pay and unemployment benefits, as well as job training and help in updating resumes. According to sources in IDT, the drastic cutbacks and restructuring stems from ongoing financial losses sustained by the company. Stock prices for publicly traded IDT Corporation have plummeted in recent months. Its shares now trade at under $3.50 a share, compared to just under $7 at the beginning of the year and over $22 in December 2003. The result, sources familiar with the situation says, is painful - but simple. "The company is doing poorly and losing money every quarter. The call center needs to become profitable, which means it has to increase its income and decrease its expenses. And lowering costs means that many people are going to lose their jobs." Both IDT Global Services in Jerusalem, as well as its parent company, the New Jersey-based IDT Corporation, denied requests for information about the developments. An official in Jerusalem routed all media queries to the U.S. office, but a spokesperson there said the company would not comment on the issue. It's profit or bust IDT Global Services CEO Eli Ninio is said to have purchased a bulk of the ownership of the Israeli operations from the parent company, though he would not agree this week to an interview request. In a meeting with employees, Ninio said recently that if the company does not break even by July it will most likely be closed down, sources said. The decline of the dollar against the shekel has further compounded the company's financial woes. While agents sell products and services in dollars, they earn an Israeli salary. The company faced another setback last month after a federal district court jury awarded $10.5 million to a former IDT employee, who sued the company for breach of contract and other claims - a verdict the company plans to appeal, according to reports. No longer a safe haven for immigrants The upshot is that IDT can no longer provide the "safe haven" for recent immigrants that it did in the past. "IDT has been a great resource for English speaking immigrants who either needed a job before they found something more permanent or saw IDT as a place to launch a career," said Daniella Slasky, director of the employment department in Nefesh B'Nefesh. "For many young olim who just finished ulpan, it was a good starting point; it was a safety net for people and without that safety net, it will be much harder." Still, about a dozen positions are now available on the IDT website and the company continues to recruit aggressively. But employees still there say conditions have become more difficult. Wages have been cut for some positions, hour-long breaks are now unpaid, and the bar for sales agents has also been raised. Those who aren't making a minimum number of sales a day have been told they would be fired. "It's been traumatizing for people because all this time, people thought IDT was a secure place to work," said someone familiar with IDT. "Now people are looking for other jobs and everyone is pessimistic about the company's future." IDT, which was ranked at 746 on Fortune Magazine's 1000 list in 2004, began its long association with new immigrants here when it opened a call center in Jerusalem's Har Hotzvim in 2002 under the name CSM and expanded ever since. But a call center in Safed - which was supposed to open half a year ago - has been on hold, with little indication it will even open. Sources say the company intends to rent out the call centers in Beer Sheva and Safed, in hopes of bringing in extra income. Howard Jonas, the company's founder, opened the Jerusalem branch because he wanted to provide employment to recent immigrants. But with the company in financial turmoil, that's become less and less feasible. "It's been difficult to make [the call center] profitable in Israel, because it's still cheaper to outsource to India," said one employee. "IDT pays above minimum wage because it was important for Jonas to give respectable wages. But with relatively high salaries, it has been hard to turn a profit. The situation pains him (Jonas) tremendously because to provide employment for new immigrants was very important to him and very dear to his heart." Bookmark to del.icio.us   Say what you want French court: Claim that Al-Dura tape doctored isn`t libelous. Peace in our time Olmert: Peace talks with Syria are a 'national duty'.

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