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Delta Galil Industries sent pink slips to all 33 employees at its Nahariya factory in preparation to close the factory.

A company executive said yesterday that the factory, which served as a coloring plant for other Delta factories, has been operating at only 40 percent capacity and is losing NIS 1 million per month. The plant has been struggling to function since the Environment Ministry set limitations on it due to fact that the dyeing material was penetrating and polluting the ground.

A Delta spokesman said the dismissal letters were sent out after it became clear there was no place to move workers elsewhere in the company, which is cutting back at other factories as well. Management at the Nahariya plant worked out a deal to award the workers severance pay above the legal minimum set by law, the spokesman said.

The layoffs are part of Delta's reorganization. The current round of layoffs comes after 500 Carmiel factory workers, comprising 20 percent of the workforce at the plant there, were informed of their dismissal two weeks ago. Histadrut labor federation chair of the Carmiel-Galil region, Shula Cohen, expressed understanding for the layoffs, saying that Delta could not survive without them.