Israeli Beverage Plant Faces Major Layoffs Amid Export Woes

Approximately 30% of the workforce at Gat Foods, a plant owned by Central Bottling Company (CBC) that produces concentrates for theפריגת beverage brand, is at risk of being laid off. The factory, located in Givat Haim Meuhad and employing around 380 workers, could see over 100 jobs eliminated. This move stems from declining economic viability of exports from Israel, attributed to currency fluctuations, rising production costs, and increased shipping expenses.

The workers' union, affiliated with the National Labor Federation, has declared a labor dispute, fearing these layoffs are the first step in a broader plan to reduce or relocate production abroad due to the high cost of Israeli labor compared to global standards. If negotiations with management fail, the union threatens industrial action, including strikes that could disrupt production and marketing.

It is important to distinguish between theפריגת brand's marketing in Israel, which continues as usual, and the Gat Foods plant's operations. The plant manufactures concentrates and bases for the beverage industry, with a significant portion of its output destined for export. However, it also produces the concentrates used inפריגת products sold domestically.

Gat Foods, controlled by CBC through Israel Beer Breweries, has faced export challenges due to the weakening dollar against the shekel and rising shipping and logistics costs, exacerbated by disruptions in maritime trade. The company aims to align its Israeli operations with the current economic realities.

The workers' committee claims their intervention, along with the National Labor Federation, has so far prevented immediate layoffs. The chief labor relations officer at the Ministry of Labor has requested the parties meet, and negotiations are expected to continue. Union chairman Sharon Hajbi urged CBC andפריגת leadership not to abandon Israeli industry and move production overseas, assuring that no worker will lose their livelihood without adequate safety nets and that all actions will be consensual and protect workers' rights and futures.

Gat Foods confirmed the need to reduce export operations due to economic non-viability stemming from Israeli production costs and currency exchange rates.