The struggle between the parties is intensifying: the pilots see a golden opportunity to replace the company's tops • In the meantime, the Histadrut has signed an agreement on their behalf with the current management

• All El Al planes remained on the ground

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  AFP

El Al is expected to undergo a makeover in the coming weeks. The company, which operates flights to about 60 destinations with a fleet of 45 aircraft and employs more than 6,000 people, is about to change significantly. The company decided to accept the offer from the Ministry of Finance and apply for a $ 250 million loan with a 75% state guarantee, the other $ 150 million, as we announced last week, the company will obtain through a public offering of shares that the public will have the right to purchase. And will be the controlling owner of the company.

After a long period of contact between the company's pilots and the management, the Histadrut decided to sign an agreement with the management behind the pilots' backs in order to save the company and all the other thousands of employees who have already signed agreements with the current management. In a conversation with Avi Edri, who conducted the negotiations on behalf of the Histadrut, he explains why they chose to act in this way, "We could not stand aside and see this situation. We had to take responsibility for the company's thousands of employees and do what was right for them and the company." Workers' committees under the Histadrut have no legal authority and therefore the Histadrut is the only one that can implement such measures. Asked if he was afraid the pilots would start an Italian strike, he replied, "I am not afraid of that and I am sure they know what is right to do. There is a large and important company here and there is no place to act in this way. There is a law in Israel and they know it."

The contacts between the pilots and the management seemed unnecessary from the beginning. The management demanded that the pilots cut their salaries in order to save about 105 million dollars a year from this place, but the gaps between the parties were several tens of millions of dollars, which was seen until yesterday afternoon as an unbridgeable issue. The intervention of the Histadrut, which greatly surprised the pilots, determined that the pilots would cut their salaries by $ 105 million a year, against their will, and thus their salaries would be cut by about 30%. Several dozen young pilots who have worked for the company for a few years are expected to receive letters of dismissal. The ESL that they received during their stay abroad will be cut by almost 40% and people close to the pilots say that "there were pilots who received NIS 10,000 a month just for the ESL" - an amount that will be cut by almost half in the new agreement.

The pilots were not expected to voluntarily sign the agreement with the management, as long as the current EL AL management and the Borovich family head the company. The pilots have already teamed up with Eli Rosenberg, the businessman who is in advanced talks to acquire the company. Rosenberg's seriousness is great, he hired a public relations firm, convened his people one day this evening and announced that he intends to acquire the company. The acquisition of the company will not be worthwhile for him in any situation, especially not after the company under the current management implements the selected plan, but in Rosenberg's sector several plans have already been formulated and everything to acquire El Al from the Borovich family.

The person behind Eli Rosenberg is his father Kenny Naftali Rosenberg, who does not hold Israeli citizenship, so the only name that should be owned by the company if the deal goes through is that of Eli Rosenberg. Two other entities acting on behalf of Naftali Rosenberg are Harel Locker, who is expected to serve as trustee and brigadier general in the Res., CPA Ram Aminach, who works to promote the deal on behalf of the Rosenberg family.

At the beginning of the negotiations, it seemed that Rosenberg was still interested, but as time went on, it became clear that Rosenberg was very serious and came with clear intentions - to acquire El Al despite the difficult situation in which the company finds itself. The Rosenberg family is willing to buy the company as it is, despite the many debts, according to people close to the deal, who add that Rosenberg is also interested in acquiring the company for Zionist reasons along with the economic decision. Significant development on the issue is expected in the coming days and Eli Rosenberg's staff are working to advance the deal as soon as possible.

El Al is in a very problematic situation, the airline owes its customers refunds of more than NIS 1 billion for unrealized flight tickets due to the spread of the virus and cumulative debts, most of which the company accumulated at the beginning of the Corona period when the company still employed many of its employees. Currently, about 95% of the company's employees (about 6,100) are in the IDF, but El Al has already signed agreements with all sectors of the company, even though the pilots have an agreement signed against their will. The company is expected to lay off about 2,000 employees, including several dozen Pilots thus becoming a leaner and more efficient company.According to reports, if Naftali Rosenberg acquires EL AL, it is possible that the activities of the subsidiary "Sun Dor" on Saturdays will also be stopped. Such and other structural changes, according to an announcement published this morning, El Al will not return to operations until at least August 31.

On behalf of Eli Rosenberg, it was stated: "Following the continuation of the negotiations, and the Board of Directors' announcement that it may hold a hearing on the receipt of assets for El Al, Eli Rosenberg convened his team - together with top legal advisers who joined the law firm Shibulat & Co., Tel. At Ram Ram Aminach and professional factors from the capital market - and there were intensive consultations that lasted into the night. In order to prevent the company from collapsing, Rosenberg is leading a strategic move to acquire control and rehabilitate the company, in line with the published state outline, with a number of options on the table. "

"The only function of the agreement signed tonight is to obtain a loan from the state. We wish the company and the banks success in this. The real operating agreement will be signed between EL AL pilots and the new owners of the company, and we are correct and expect this agreement."