Israeli Port Workers Agree To End Strikes
(August 5, 2004)
Israel's main labour union and the government reached an interim agreement
today, reports Reuters Foundation, which ends 22 days of disruptions
at the country's ports by workers protesting at state privatisation
plans, officials said.
Under the deal, the government will freeze moves towards reforming
the country's three ports and workers will refrain from any strikes
as the sides attempt to resolve a dispute over port workers' pension
and employment benefits.
Finance Ministry officials, however, insisted plans to privatise ports
in Haifa, Ashdod and Eilat would go ahead within seven months under
a law passed last month. Workers fear job losses as well as cuts to
salaries and pension payouts.
Under the plan, private companies will operate each port as part of
a sweeping programme of free-market reforms.
"Nothing is going to change with regards to the law (on port reform),"
a Finance Ministry spokesman said.
The 22 days of stoppages at the country's ports have cost the Israeli
economy, which relies heavily on international trade, about 4.8 billion
shekels ($1.05 billion), estimated Manufacturers' Association chief
Oded Tyrah.
"The strike has prevented the creation of 25,000 new jobs. The effects
have hurt foreign trade and will affect the way investors view Israel,"
Tyrah said in a statement.
The Finance Ministry said that under the deal, a fund of between 80
million to 150 million shekels would be set up to compensate workers
for being transferred to private port companies when the privatisation
goes through.
Thirty-two vessels were waiting offshore and a further 25 ships, docked
at Israeli ports, had not yet been unloaded, Israel Shippers' Council
head Eyal Melamud told Reuters.
He said if all the port workers returned to work, which a union spokeswoman
said would happen on Thursday, it would take three to four days to clear
the backlog.
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