The Histadrut Labor Federation's Tel Aviv branch has lifted its opposition to the sale of ZOA House and to plans for a new project at the city site.
In December 2002, the Histadrut appealed to the courts against the building's acquisition by the Kaldash company, a subsidiary of Polar Investments. According to the appeal, the 16 ZOA House employees were not consulted over the deal and their future is uncertain. The appeal was submitted after Kaldash had reached an agreement to buy the site, whose value is estimated at $7 million, from the Zionist Organization of America.
The plan calls for building a 24-story tower with 80 luxury apartments, for which sales would bring in an estimated $30 million.
In an agreement reached between the Histadrut and workers at the ZOA House, which is financially strapped, the workers will be dismissed and receive compensation within 48 hours. They will also receive money owed to them retroactively from August, and will be paid a reduced salary until July 2004. During this period, some of the social benefits that they were entitled to will be canceled.
Based on the agreement, the Histadrut has withdrawn its opposition to the sale.