Hapag-Lloyd has assured that it has no plans to carry out massive layoffs at ZIM Integrated Shipping Services, in an attempt to reduce the tension generated by the strike that the workers of the Israeli shipping company have intensified in light of uncertainty about the security of their jobs.
"All employees of ZIM's headquarters and its management team will receive a job guarantee for a defined period following the shutdown of operations, which will be negotiated in good faith and with appreciation alongside the respective labor representatives. Israel will remain a solid location for the combined business of ZIM and Hapag-Lloyd," said Rolf Habben Jansen, CEO of Hapag-Lloyd, in a statement released this Tuesday.
The statements come in a context of increasing labor conflict. According to Reuters, around 800 of the 1,000 unionized employees of ZIM supported the strike this Tuesday, which resulted in the halting of operations at the company's headquarters in Haifa and the interruption of port activities in the ports of Ashdod and Haifa. Union representatives indicated that vessels already docked would not be unloaded.
The strike was triggered after Hapag-Lloyd announced its intention to acquire ZIM for an amount of 4.2 billion dollars. In a related transaction, the private equity fund FIMI Opportunity Fund, based in Tel Aviv, will acquire a separate business unit that will operate 16 vessels to maintain dedicated maritime connections for Israel under the name "New ZIM." Union representatives have expressed concern over the possibility that the new entity will employ only 120 people, which could leave hundreds of workers without jobs.
