ZIM: ZIM Workers' Union Declared a Full Strike

The ZIM workers' union decided today (Thursday) to shut down all company activities after negotiations with the company's board of directors reached a deadlock.

Oren Kaspi, Chairman of the Union, released a statement saying, among other things: "900 employees are at risk of dismissal, and our country's entire maritime sovereignty is in danger. We love our workplace and believe in it; therefore, we are striking to protect ZIM. Every red line we set has been violated. The board is working against us using 'divide and conquer' tactics; we will not abandon older employees, who gave their best years to ZIM and are far from retirement age, to a life of poverty."

"We will not allow ZIM to be dismantled into several small companies, which would leave the country's entire maritime trade in foreign hands. Our struggle is for our future as workers, but also for the national security of the State of Israel. Therefore, we are declaring a full shutdown of the company—starting this moment."

The ZIM workers' union expressed concern over a planned split of the company into several smaller entities, such that loss-making lines would remain in Israel. It is worth noting that ZIM led the transport of ammunition and fuel to Israel during the "Iron Swords" war and operations in Iran when foreign companies ceased sailing to Israel. Additionally, the company transported doctors who were "stuck" abroad when the skies were closed and there were no flights from Ben Gurion Airport.

ZIM stated in response: "The workers' union announced a strike despite the fact that, within the framework of negotiations with the company's employees, an agreement in principle was reached regarding the terms of the collective agreement in connection with the transfer of control in the company."

As a reminder, the company's management signed a merger agreement with the German shipping giant Hapag-Lloyd. As part of the deal, Hapag-Lloyd will purchase all ZIM shares in cash at a price of $35 per share—a figure reflecting a 58% premium over the market price and a total company valuation of approximately $4.2 billion.

Yesterday, the company's President and CEO for the past nine years, Eli Glickman, announced his intention to step down within six months, linking his resignation to the merger agreement with Hapag-Lloyd.