The fate of El Al, Israel’s national airline, appeared to rest tonight with the air crews’ union representing pilots, flight engineers and navigators. They will meet Tuesday to decide whether to accept a 20 percent cut in salary and other concessions demanded by management as the only means of saving the financially troubled carrier.
The El Al Board of Directors met tonight after a lengthy negotiating session with the pilots’ representatives. Chairman Avraham Shavit said it would convene again Tuesday and, should the flight crews have rejected an agreement, the Board will consider recommendations to close down the air line.
The need to find a solution to El Al’s-financial problems became urgent as the January I deadline neared for ending contract negotiations with various employe groups, including flight attendants; ground crews, maintenance workers, technicians and clerical workers. An agreement with the pilots and other cockpit officers, by for the highest paid group, is considered essential if agreements are to be reached with the others. The pilots have Declared themselves amenable to negotiations although they have expressed resentment over what they consider a management inspired campaign to convince the public that they are overpaid.
Their compensation in some cases is said to amount to $12,000 per month, paid partly in foreign currency. Management has proposed a 20 percent cut to be effected mainly by ending the linkage to foreign currency and by ending the company’s practice of paying that portion of the pilots income tax levied on foreign currency earnings. The air line is also pressing for early retirement in all categories in order to reduce personnel. Earlier today, Shovit announced that the pilots had accepted these demands. Later, the announcement was retracted after a member of the pilots’ committee denied that any agreement had been reached and said the Union’s general assembly would have to consider the proposals.
El Al, which links Israel with major cities in North America, Europe and Africa. reportedly lost $50 million this year and is expected to lose double that amount next year.
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