Labor Dispute Declared at ZIM Shipping Company

A labor dispute was declared today at ZIM Shipping Company, following an appeal by the workers' committee, alleging lack of transparency regarding the company's future and acquisition processes. The dispute involves approximately 750 company employees, who could take organizational actions starting from January 9.

The labor dispute notice was sent to ZIM's CEO and President, Eli Glickman, by Ran Haluani, the appointed representative of the Histadrut (General Federation of Labor) in Haifa. According to the letter, the workers' representation could take organizational actions starting from January 9, if there is no change in the situation.

As mentioned, the reason for declaring the dispute, according to the workers, is a lack of transparency regarding the future of the company, which has been without a controlling core for several months, and in light of receiving several acquisition proposals. The workers emphasize that they oppose the transfer of control of the Israeli shipping company to foreign hands, claiming they have no certainty about their professional future if the company is sold to a foreign entity.

The workers' opposition intensified after it was announced that the German shipping company Hapag-Lloyd is interested in acquiring ZIM. According to the workers, the German company is partly held by investment funds from Qatar and Saudi Arabia, and transferring control of ZIM to such an entity could, in their view, harm the security of shipping and the continuity of trade to and from Israel.

The workers' position is reinforced by an official position paper recently published by the National Emergency Authority (NEA), stating that the State of Israel should act to prevent the transfer of control in ZIM to foreign hands, due to potential implications on the country's ability to function in an emergency and on the continuity of supply to the economy.

At the beginning of the document, the NEA notes that it has received information that there are currently 'proceedings to examine the transfer of control in ZIM Shipping Company to foreign hands', and in this context, the meaning of 'waiving the golden share' that the state holds for emergency purposes also arises.

The NEA emphasizes that the State of Israel is obligated to ensure continuity of operation in all scenarios, especially in situations where a 'naval siege / disruption in ports' - scenarios that could harm the 'vital import' capability of the country.

The NEA further notes that it has developed response plans for these extreme situations, where 'the golden share constitutes a central component in the national response'. Accordingly, it is written that coordination with ZIM 'requires continuity' in order to enable 'vital import to Israel in all scenarios'.

In the bottom line, the NEA establishes a clear operative position: 'The position of the NEA is that the State of Israel should act to enable the activity of ZIM Shipping Company in routine and extreme scenarios', and therefore 'keep control of the company in Israeli hands', this is 'for the sake of preserving the continuity of state function'.

The position paper is signed by Eitan Yitzhak, head of the National Emergency Authority, and it was distributed to the senior state and professional echelon, including the Minister of Defense, the Minister of Transportation, the Director General of the Prime Minister's Office, and the heads of the security system and the Ministry of Transportation.

Unless there is a change, starting from January 9, ZIM employees could take organizational actions, parallel to the ongoing public and regulatory debate about the future of the Israeli shipping company and control over it.