Crisis in “Arkia”: what happened to the refusal of the owners to complete the transaction for the sale of the airline

The Israeli airline Arkia is experiencing a labor conflict that could affect hundreds of employees and call into question the future development of the carrier. The Histadrut Transport Workers' Union has officially declared a labor dispute over management's plans to carry out cuts and reorganizations without consulting a working committee. An additional reason for the confrontation was the uncertainty around the sale of the company, which representatives of the team consider as an opportunity to ensure its further work.

According to the union, the owners of Arkia are taking unilateral steps that can significantly affect the employment of staff, working conditions and social guarantees of employees. We are talking about the proposed reduction of staff, changes in the organizational structure and the closure of certain air routes.

Staff representatives were particularly outraged that such decisions were allegedly taken without prior discussion with the working committee. The Histadrut considers it unacceptable to carry out changes affecting the fate of employees without the participation of their legal representatives.

Against this backdrop, there are growing concerns among employees about the airline's financial sustainability. The union expressed concern that the actions of the owners could not only weaken the position of “Arkia” in the air transportation market, but ultimately lead to insolvency.

Another source of tension was the situation around the possible change of owners of the carrier.

According to representatives of employees, negotiations on the sale of “Arkia” are at an advanced stage, and the proposed transaction can provide the company with the prospect of further development. However, according to the union, the current owners delay its completion, without explaining to the collective the reasons for the delay.

As a result, employees remain uncertain about the future of the airline, the preservation of jobs and conditions for further employment.

The deputy chairman of the Histadrut Transport Workers’ Union, lawyer Nir Eisenberg, sharply criticized the actions of the owners of Arkia, the Nakash brothers, and Avi Hormero, who represents the interests of majority shareholders.

If the Nakash brothers are no longer interested in owning the Arkia, it is time to complete the sale and hand it over to those who truly believe in its future. It is unacceptable that the actions of Avi Hormero, who represents the interests of major shareholders, keep hundreds of employees and their families in constant uncertainty, Eisenberg said.

He stressed that workers should not become an instrument of pressure in negotiations between owners and potential buyers.

The Arkia collective is not a bargaining chip or a bargaining chip in other people's bidding. There are hundreds of families and thousands of passengers behind the airline. The histadrut will not allow workers to be held hostage by the struggle for property, the union spokesman added.