Workers Facing Layoffs

Israeli workers are facing layoffs in two widely separated regions–Haifa and the Negev. The Timna Copper Mines, near Eilat, announced today that it planned to furlough about 200 workers because of the precipitous drop in world copper prices last year–from IL 1270 to IL 51 per ton. The Haifa Port Authority said it would dismiss about 50 seasonal workers and possibly an unspecified number of permanent workers as well.

In both instances, the impending layoffs are not linked to the controversial sales and payroll taxes imposed by the government last week which many businessmen fear may lead to widespread unemployment. The Timna mines cited high production costs which, combined with the drop in the copper market have saddled the company with heavy losses. It plans to decrease production by 20 percent, cut back on geological surveys and lease some of its heavy equipment for outside work. The layoffs at the Timna mines will have an impact on the Eilat area. The Eilat Labor Council has asked the government to investigate new job opportunities for Eilat workers.

The Haifa Labor Council’s secretary, Eliezer Molk, warned the Port Authority last night to delay its layoffs until after the Passover holiday to give the workers time to find other jobs. Dismissals are also expected in several textile plants due to the financial crisis affecting Israel’s textile industry. Histadrut is expected to try to forestall any dismissals prior to Passover.

Government spokesmen insist, meanwhile, that the government will be able to cope with what it calls “pockets” of unemployment should they develop as a result of the 4 percent payroll tax and the 7.5 percent sales tax which is expected to reduce overall consumption. Both the Finance and Labor ministries claim there is no unemployment in Israel, yet.