Israel Corporation will return to Zim privatization

The Israel Corp. (TASE:ILCO) is about to return to the process of the privatization of the state's stake in shipping line Zim. This follows the initialing of a collective agreement between Zim and Ofer Ship Holdings on one side, and the Histadrut (General Federation of Labor in Israel) and the Israeli Sea Officers Union on the other. The agreement sets out the way in which Israeli officers and crew will be employed on Zim ships following privatization.

The negotiations with the employees were mainly over the intention to split Zim into two companies - one for international activity (90% of Zim's business), and the other for Israeli activity. No buyers have so far been found for Zim, apart from the Israel Corporation, which owns 49% of it, because of the global situation in the shipping industry, the security and economic situations in Israel, and the benefits granted to the Israel Corporation.

The agreement stipulates that Israeli officers and crew will be employed on 25 ships: nineteen of Zim, and six of Ofer Brothers. Each ship will have seven Israeli officers. The agreement will be in force for seven years from the date of sale of the state's shares. The Israeli Sea Officers Union, headed by Avi Levy, undertook to refrain from presenting demands during the privatization process.

Published by Globes [online] - www.globes.co.il - on January 7, 2004