Coca-Cola Israel Plans Layoffs at Historic Prigat Juice Plant

The Central Bottling Company (CBC), the Israeli bottler of Coca-Cola, has informed its employees at the Prigat juice factory in Kibbutz Givat Haim that it intends to lay off 30% of its 400 workers. The factory, which produces concentrates and natural juices, with approximately 90% of its output destined for export, is facing economic challenges. The company cited the declining dollar exchange rate and disruptions to international shipping due to ongoing conflict as reasons for the planned cuts.

Of the 400 employees, about 200 are unionized, and the company plans to lay off at least 60 of them. Workers fear these layoffs are a precursor to moving production abroad, noting that Prigat also has a factory in Romania. In response to the announcement, the National Labor Federation and the Prigat workers' committee declared a labor dispute, threatening strikes and production stoppages if the issue is not resolved.

The Ministry of Labor has intervened, with the supervisor of labor relations scheduling an urgent meeting between the parties to mediate. The workers' representatives have strongly stated that abandoning Israeli industry and moving production overseas is not a legitimate solution. They are committed to protecting the workers' livelihoods and ensuring their economic future.

A spokesperson for GAT Foods, a subsidiary of CBC that produces concentrates and bases for the beverage industry, confirmed that export operations in Israel are being reduced due to economic non-viability stemming from rising production costs and currency fluctuations. The Prigat factory, originally established in the 1940s by Kibbutz Givat Haim, has a long history of fruit processing and juice production. CBC became the sole owner of the factory in 2018.