Israel court lets Electric Co. dip into workers' fund
Labor Court rules Israel Electric Corporation can withdraw NIS 600 million from an unofficial fund used to fund free power for employees.
The Israel Electric Corporation can withdraw NIS 600 million from an unofficial fund used to fund free power for employees, the Labor Court ruled Thursday.
The IEC union had launched sanctions after the power utility's board ruled that the cash-strapped company could dip into the fund.
The court's ruling means the power utility is unlikely to issue a going-concern warning with its financial reports.
While the court allowed workers to continue with their sanctions, it also stated that this was a "political strike." It called on them to make sure their action was proportionate, and not to harm electricity production or the planned bond sale.
However, it noted that its response might be entirely different if the company were to ask to confiscate the fund in full without workers' permission.
Power prices are set to increase 8.9% today due to the utility's rising fuel costs.