Rotem Amfert Accused of Falsely Threatening Negev Layoffs for Regulatory Benefits
Translated & summarized from Shakuf by baba
Rotem Amfert, a major polluter in Israel's Negev, is accused of repeatedly threatening layoffs to gain regulatory benefits. The company faces criticism for its environmental record, including a 2017 toxic spill, and its continued use of polluting storage ponds.
The story in 5 lines · by baba
- Rotem Amfert allegedly uses layoff threats for regulatory gains.
- Company faces criticism for environmental damage in the Negev.
- A 2017 toxic spill caused significant ecological harm.
- Environmental groups are fighting the company's plans.
- Investors appear unconcerned by the company's controversies.
Rotem Amfert, a subsidiary of Israel Chemicals (ICL), is facing renewed accusations of using the threat of mass layoffs in the Negev as leverage to gain regulatory concessions. This tactic, according to critics, has been employed for approximately twenty years. The company, identified as one of Israel's major polluters, has allegedly turned the Negev region into a "backyard" characterized by environmental damage and neglect, exemplified by towering piles of toxic phosphogypsum.
Recent media reports highlighted potential layoffs at the company, which critics claim were triggered after the company's request to a subcommittee of the National Planning and Building Council was rejected. Environmental groups, led by Lobby 99 and the Society for the Protection of Nature in Israel, argue that Rotem Amfert is employing a "doomsday weapon" tactic, issuing threats that have historically not materialized. The company manufactures "wet phosphogypsum" and stores it in ponds, which it was supposed to have closed 25 years ago.
In 2017, a dam failure at one of these ponds released a large volume of toxic phosphogypsum into the Ein Ashalim nature reserve, causing significant ecological damage, including the destruction of plant and animal species and the contamination of water sources. Despite ongoing legal proceedings and directives from the Water Authority to close these polluting ponds, the company has reportedly refused. The recent rejection by the subcommittee was in response to an appeal by environmental organizations against a district planning committee's decision to permit the company's plan, which would allow for aquifer contamination.
Despite the controversy and the company's alleged history of environmental violations and regulatory maneuvering, its stock on the US and Israeli exchanges has reportedly seen a 3% increase, suggesting investors are unconcerned by the layoff threats. A judge, Gad Gideon, previously criticized Rotem Amfert's conduct, suggesting the company imposes "fait accompli" situations on planning institutions and rewards past non-compliance with regulatory ease, using employment threats to secure approvals while downplaying environmental concerns.