Metalworks labor dispute ends with deal to lay off 27

A labor dispute at the Hanita metal factory came to a close yesterday, after the Histadrut labor federation and the factory's union signed an agreement with management under which 27 employees will be laid off.

The Histadrut declared the labor dispute in late March, after the factory, located in the northern town of Shlomi, announced it would lay off 32 of its 270 workers.

Under the agreement reached yesterday, 20 of the dismissed employees will receive enhanced compensation totaling 170 to 270 percent of their monthly salaries, depending on how long they have worked for the company. Every dismissed employee will also receive extra months of severance pay beyond the legally mandated level, again depending on how long he has worked at Hanita.

The seven remaining employees will take early retirement, and the company will pay them a monthly pension equal to 70 percent of their last salary until they reach the legal retirement age of 67.

Hanita union chairman Ayman Fellah expressed satisfaction with the agreement yesterday. "The agreement that was signed ensures the dignified departure of 27 of the factory's workers on one hand, and on the other hand, creates hope for the factory's continued existence and a more promising future," he said.

Asher Shmueli, chairman of the Histadrut's Western Galilee division, said there was no alternative to the dismissals "in light of the factory's economic crisis."

Factory manager Michael Shemer said he is "happy that we reached an agreement with the workers' representatives, and that we will thereby avoid bringing additional harm to the factory. Throughout the entire process we tried to be fair with those who are leaving their jobs. I'm also happy the negotiations with the employees' representatives were conducted in a civilized manner."