Israel Post Co. accuses Communications Minister of not implementing agreements
The Israel Post Company said last week that due to dispute with Ariel Atias, Communications Minister, it would lay off 150 employees immediately and cancel the planned hiring of 700 contract employees as regular employees.
In a statement issued by the company it accused the communications minister of not implementing agreements guaranteeing the company’s financial standing.
A spokesman for the company noted that a year ago an agreement was reached between the postal company and Ministries of Communications, Finance and the General Federation of Labor in Israel which was supposed to furnish the company with the necessary standing. Since the agreement was reached the Minister has apparently done little to implement it.
In the statement the company also threatened to cut executive salaries by 10 pct and reduce the marketing budget because the company lost little over NIS 90 million in 2007 (around USD 30 million), more than double the projected loss.
The company which is the largest logistic provider in Israel provides its customers with highly sophisticated mail sorting technology at three centers in Israel; computerized point-of-service stations at the branches; a computerized system for tracking postal items.
It has a large transportation fleet that reaches everywhere in the country daily and sophisticated control mechanisms for collection and distribution of mail.
