The airline has signed a convalescence agreement with the workers' committee, which will allow a return to activity after a long period of paralysis. • Minister Regev: "We look forward to Arkia returning to the take-off schedule"
Tonight (Wednesday) a convalescence agreement was signed in Arkia, against the background of the budget hole caused as a result of the Corona crisis.
After a lengthy discussion between the workers' committee and the management, mediated by the Histadrut, it was decided on a wage reduction mechanism for all sectors in the company, which would apply to workers whose wages exceed NIS 8,000 per month.
The move will be made gradually over three periods and in line with developments in the aviation industry.
In addition, the number of employed persons will be reduced to 400 workers.
Archive photo: Paz Bar
Transport Minister Miri Regev said: "Congratulations to Arkia's management, employees and the Histadrut, who have found a way to get the company back on the runway. Arkia has taken part in domestic and international flights and we expect to see them return to the runway."
The chairman of the Histadrut, Arnon Bar-David, stated that this was significant news. "Dedicated Arkia workers have waged a long and stubborn struggle over their future, their livelihood and the workplace they see as their home.
They have shown responsibility and mutual guarantee, and I thank them for that and promise that the Histadrut will continue to stand by them in the process of healing society. "
"Embarking on a new path"
Chairman of the Histadrut's Transportation Workers' Union, Avi Edri: "I am proud of Arkia's committees that knew how to make difficult decisions and of the workers who conducted a clean and inspiring protest.
All that remains is for us all to fly blue and white - thus strengthening the Israeli airlines. "
Gadi Tepper, Chairman of the Company's Board of Directors: "We are pleased that after intensive negotiations that lasted for days and nights, we have signed a new collective agreement that will march the company back to activity and open new goals."
Arkia Workers' Committee Chairman, Aliza Blaish: "Today we took a significant step to save the company from closure and lay off hundreds of employees.
Since the Corona crisis began and Arkia workers were expelled to the IDF, we, all members of the council accompanied by the Histadrut, have been in ongoing negotiations with the company's management to get it back on track, and I am happy to say that today we have succeeded. We were accepted and not all of our requests were answered by the management, but we maintained the continued existence of the company and the return of the employees from the hospital in a gradual manner, while maintaining their conditions as much as possible.
I believe that from here we are embarking on a new path, which will lead Arkia to new heights. "
The agreement will allow a return to operations, after a long period in which the employees were in the IDF and the company's activities were almost completely silenced. The owners of the company are the brothers Joe, Rafi and Avi Nakash. Its employees hold 30% of Arkia shares.
At the time, it was determined that for the purpose of recovery, the company would take loans from the banks in the amount of NIS 130 million, and in addition the owners would inject $ 10 million in favor of collateral.
The Histadrut will also support the process through a loan of one and a half million dollars, which will be transferred subject to the company actually returning to activity.