Central Bottling Company Subsidiary to Lay Off 20% of Production Staff
Gat Foods, a subsidiary of the Central Bottling Company (CBC) that produces concentrates and bases for the global beverage industry, announced it will lay off 20% of its production employees at its Emek Hefer factory. The factory employs approximately 300 workers, meaning around 60 individuals will lose their jobs. This decision comes as a direct result of the strengthening Israeli shekel, which has negatively impacted the company's export profitability. The shekel's appreciation, with the dollar falling below 3.00 NIS this year, has forced Gat Foods to seek immediate solutions to declining revenues and adapt to the new currency exchange rates by developing a product portfolio that ensures profitability.
In response to the layoffs, the Gat Foods workers' committee and the National Labor Federation have declared a labor dispute. The parties have engaged a mediator to explore potential solutions, including reducing the number of layoffs, integrating affected employees into other CBC Group companies, or offering retirement packages to prevent further industrial action. Gat Foods exports about 90% of its production, with a small portion used for the production of Pri Gan juices at the company's Ashkelon facility.
The workers' committee expressed concerns that the layoffs might be a precursor to closing Israeli production lines and relocating them abroad, though the company has not confirmed such intentions. The committee warned that if the dispute remains unresolved, workers may resort to sanctions and strikes, potentially disrupting the company's production and marketing. Sharon Hajbi, chairman of the workers' committee, urged CBC leadership not to abandon Israeli industry and flee to overseas production under the guise of global crises, assuring workers that the unions would protect their livelihoods and rights.
CBC stated that Gat Foods is compelled to reduce its export operations from Israel due to the economic non-viability stemming from high production costs in Israel and unfavorable currency exchange rates.
