Israeli Court Allows Pharma Workers to Strike Over Company's Public Offering
An Israeli labor court has rejected a request by pharmaceutical company Rafa to prevent its employees from striking. The Regional Labor Court in Jerusalem ruled that the workers' concerns about their employment conditions and status potentially being affected by the company's transition from private to public are "worthy of being heard and examined." The court found no grounds at this stage to limit the workers' organizational actions, stating that the labor dispute does not appear to be artificial or solely an excuse to violate industrial peace.
Presiding Judge Daniel Goldenberg noted that while the company's chances of success in its request were not negligible, they did not necessarily outweigh the employees' arguments. He clarified that a company's IPO (Initial Public Offering) process, not just a change in control, is sufficient grounds for negotiations over a collective agreement. The court accepted the employees' claim that the demand for negotiations was raised upon the publication of the first draft prospectus, deeming it a substantive claim requiring further examination.
The court also determined that the company's public offering is a significant change that could impact employees, justifying the examination of their demand for negotiations. The strike was deemed proportionate, and the court found no evidence of bad faith by the employees or their union, the Histadrut.
The ruling highlighted a long period of dialogue and negotiation between the parties, with the workers' representatives showing flexibility. Danny Bonfil, chairman of the Jerusalem region of the Histadrut, expressed hope that management would now understand the workers' right to a bonus following the court's decision. Adv. Galit Adika, a professional union secretary, stated the court sent a clear message about workers' rights to fight for their future and called on management to return to negotiations to ensure employees benefit from the company's success.
