Hamashbir, Staff Resume Talks on Recovery Plan

The Hamashbir Lazarchan department store chain resumed negotiations with the Histadrut labor federation yesterday over a recovery plan that will entail laying off 180 workers, some 10 percent of the chain's total workforce.

On Wednesday, both sides informed the Tel Aviv Labor Court - to which the Histadrut had applied for a restraining order against the dismissals - that they were ready to waive the suit and open negotiations on the recovery plan instead.

In light of the talks, Hamashbir has decided to postpone the planned closure of its store on Tel Aviv's Allenby Street from November 10 to November 30, and company sources said additional postponements were also possible. The store on Allenby Street, which employs 23 people, is currently selling overstocks only.

In addition, Hamashbir employees yesterday retracted their decision to call an immediate strike to protest the fact that their September salaries were not paid in full. Workers have so far received only NIS 1,000 apiece for September, less than one-third of their normal salary, and management has said the remainder will be paid only at the end of the month. But the Histadrut convinced the workers that an illegal strike - which this would be, as Israeli law requires a 15-day cooling-off period between the declaration of a work dispute and the start of a strike - would be a bad idea.

The workers had threatened earlier this week to launch woldcat strikes throughout the chain's stores, at indefinite locations, and at unannounced times. This was in order to remove the possibility of Hamashbir management preventing the industrial action.

Yesterday's talks centered on the Histadrut's demand that the dismissed workers receive a larger severance package than the minimum required by law.

The labor federation argued that even though this would increase Hamashbir's cash flow problems, it would ultimately help the chain, as it would encourage workers to take voluntary retirement.

Hamashbir Lazarchan also announced yesterday that it had reached debt-rescheduling agreements with all its suppliers except two: Zara and Pull & Bear.