The Israel Post Company and the Ministry of Finance signed an agreement on a revitalization plan for the company, and a collective work agreement was also signed with representatives of employees and the Histadrut. The cost of the agreement is 1.7 billion shekels, a large part of which depends on the change of the bankrupt company’s license, and on the Knesset’s approval of the change.
The recovery plan agreement was signed after many months of negotiations, and finds the company in a difficult financial position, with losses of hundreds of millions of shekels annually and significant cash flow challenges. The agreement includes the sale of part of the company’s real estate to the state.
Under the agreement with the employees, 1,050 employees will leave the company, hundreds of them within the next few months. The state will loan the company up to NIS 400 million to support its cash flow and, if necessary, provide up to an additional NIS 180 million. Hundreds of postmen and postal women will become dispatch workers supporting parcel service.
Director General of the Ministry of Finance Ram Belnikov said, “The take-back agreement will open the way for the Israel Post to embark on a new and healthy path, and will enable the company’s management to break even with the goal of full privatization as quickly as possible.”
Posted by Globes, Israel business news – en.globes.co.il – September 20, 2022.
© Copyright Globes Publisher Itonut (1983) Ltd., 2022.