Pri-Gat Beverage Plant to Lay Off a Third of Staff Amid Economic Woes

The Pri-Gat beverage plant, owned by "Hevra Merkazit Le-Mashkaot," has informed its employees that approximately 130 workers, or one-third of its workforce, will be laid off. The plant currently employs over 400 people. The company intends to dismiss at least 60 unionized employees. Management cited the unprofitability of exporting concentrates from Israel due to the dollar's declining exchange rate and difficulties in international shipping caused by ongoing military actions as reasons for the layoffs. Employees expressed concern that these layoffs might be the first step towards relocating the company's operations abroad, noting that Pri-Gat also has a plant in Romania.

In response to the company's decision, the National Labor Federation (Histadrut Ha'Ovdim Ha'Leumit) and the Pri-Gat workers' committee declared a labor dispute. They warned that if the conflict is not resolved, sanctions, including a strike, could be implemented, potentially disrupting the company's production and sales. The immediate wave of layoffs has been temporarily averted due to the intervention of the workers' committee and the Histadrut. The Ministry of Labor's labor relations commissioner has stepped in, urgently convening a meeting between the parties to seek a compromise.

The Histadrut and the workers' committee maintain that moving production of the well-known Israeli brand abroad is not a viable solution. Union committee chairman Sharon Hajabi stated that the unions will continue to fight for job preservation. Gat Foods, a subsidiary of "Hevra Merkazit Le-Mashkaot," explained that the company is forced to reduce export volumes from Israel due to economic non-viability stemming from rising production costs and currency fluctuations.

The plant in Givat Haim produces concentrates and natural juices, while the Pri-Gat brand's non-alcoholic beverages are manufactured in Ashkelon. About 90% of the Givat Haim plant's output is destined for export. Pri-Gat was founded in the 1940s by Kibbutz Givat Haim, initially processing vegetables and citrus before expanding into fruit concentrates and juices. In 1992, the kibbutz partnered with "Hevra Merkazit Le-Mashkaot" for the production of Pri-Gat beverages in Ashkelon. The company became the sole owner in 2018 after acquiring the remaining shares from its kibbutz partners for 200 million shekels.