ZIM workers halt operations as Hapag-Lloyd takeover triggers job insecurity

Unions cite plans for only 120 roles at “New ZIM” from a 16‑vessel carve‑out, while Hapag-Lloyd signals no immediate layoffs

ZIM workers halt operations as Hapag-Lloyd takeover triggers job insecurity

Reuters report that employees at ZIM Integrated Shipping Services intensified industrial action on Tuesday, suspending all activity following confirmation that Hapag-Lloyd will acquire the company for just over USD 4.2 billion.

 

The strike began on Sunday at ZIM’s headquarters in Haifa after reports of the planned transaction emerged.

Since this morning, we are not allowing any kind of activity.

Ziva Lainer Schkolnik

Union leader at ZIM

Lainer Schkolnik added that vessels had been stopped at Ashdod and Haifa and that ships already alongside would not be unloaded.

 

The stoppage covers the handling of container ships as well as specialised vessels transporting agricultural products.

 

Union officials said the strike was launched by about 800 unionised employees. Separately, the workforce includes around 800 staff under collective agreements, with 100 on personal contracts and a further 300 on shorter terms.

 

A related carve‑out will transfer 16 vessels from ZIM to the Tel Aviv‑based FIMI Opportunity Fund to form a dedicated Israeli container line, to be named “New ZIM”.

 

According to Lainer Schkolnik, management told the union that “New ZIM” would employ only 120 people, prompting concern that nearly 900 workers, including many with tenure guarantees, could face redundancy.

 

Oren Caspi, chairman of the employees’ union, said neither current management nor the prospective owners had initiated talks over employment terms.

Ships are already standing idle and damage is accumulating. We will paralyze the company if necessary

Oren Caspi

Chairman of the employee's union

He also stated that Hapag-Lloyd is expected to establish a research and development centre in Israel, comprising ZIM’s technology staff, with the possibility of additional employees being absorbed.

 

Meanwhile, Hapag-Lloyd said in a statement that all of ZIM’s management and headquarters staff “will receive job security after closing, which should be negotiated in good faith with the labour representatives”.

 

The company added: “Israel will also longer term be a strong location for the combined business of ZIM and Hapag-Lloyd”.

 

At a press conference, Hapag-Lloyd’s CEO, Rolf Habben Jansen, said there were no plans for immediate large-scale job cuts.


"There probably won’t be that many [layoffs] at first. We are just starting to make plans. But if we look five or ten years ahead, the number of employees at Hapag and Zim combined will of course be a little lower,” Rolf Habben Jansen said.

 

He added, “We will maintain a very significant presence in Israel. Not only to cover the local markets but also to continue to benefit from the highly skilled workforce we can find here.”

Source: ShippingWatch, Reuters
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