When Israel’s Histadrut national labor federation declares a ‘labor dispute’, it starts a 14-day countdown timer during which time the sides are expected to attempt to work out their differences. When this time period elapses, a strike is permitted.

Israel Electric Company CEO Eli Glickman has declared a state of emergency, for after the declaration of the labor dispute, he fears workers will walk off the job immediately, citing threats he received by workers to do something radical in response to failed talks surrounding the utility’s need to implement major reform.

The situation according to some is critical as the government broke off talks with the utility surrounding IEC’s need to implement a broad sweeping reform. Efforts to compel Glick’s resignation have been unsuccessful while labor leaders fear IEC is heading for bankruptcy in the fast lane.

The Haifa Labor Court on Monday stepped in and instructed workers they may not implement sudden unilateral sanctions. Another hearing is set for Wednesday morning.

IEC has been plagued with irresponsible spending over the years as the utility company has been bailed out by the national government numerous times, yet it continues paying inflated salaries and unacceptably high perks, which many feel come at the expense of taxpayers. The utility has also made poor investments and lost huge sums of money, now facing the need to cut salaries, layoffs and bring the utility down to a regular Israeli standard, a reality that is being met with strong resistance. One such perk is that employees over the years enjoyed free electricity.

(YWN – Israel Desk, Jerusalem)