Arkia Airline to See New Controlling Shareholders Amid Labor Dispute
Translated & summarized from i24NEWS by baba
Arkia's co-owners, the Nakash brothers, have agreed to sell a majority stake to a new investor group, injecting tens of millions of dollars into the airline. This comes hours after the Transport Workers Union declared a labor dispute over alleged unilateral actions by management, including staff reductions. The new owners aim to stabilize and strengthen Arkia, while the union warns against using employees as bargaining chips. Arkia stated its operations remain unaffected.
The story in 5 lines · by baba
- Arkia's owners agreed to sell a majority stake to a new investor group amid a labor dispute.
- The Nakash brothers will transfer control of Arkia to the purchasing group after injecting tens of millions of dollars.
- The Transport Workers Union declared a labor dispute over alleged unilateral staff reductions and lack of dialogue.
- The new investor group includes prominent Israeli business figures and aims for long-term commitment.
- Arkia stated that its operations and flights continue as scheduled despite the labor dispute.
Hours after a labor dispute was declared at Arkia Airlines, co-owners Rafi, Joe, and Avi Nakash announced on Thursday they have signed an agreement to bring in a new investor group that will become the controlling shareholder. Avi Hurumro, CEO of the Nakash Group and appointed by the brothers to lead the company's recovery, spearheaded the deal.
The move follows the Transport Workers Union's declaration of a labor dispute earlier the same day, citing "unilateral steps by Arkia's owners, primarily efficiency measures and staff reductions, without dialogue or agreement with the workers' representatives."
The new agreement will see the purchasing group inject tens of millions of dollars into Arkia, acquire a majority of the company's shares, and take control. The purchasing group includes businesswoman Einav Adib-Barer, owner of medical centers; businessman Kidan Dahari, owner of real estate companies; businessman Yaron Adib, owner of real estate companies; and businessman Yariv Lerner, chairman and owner of the Negev Group.
The purchasing group stated, "We believe in Arkia and the Israeli aviation sector. Arkia is a veteran brand with a professional and dedicated staff, and we are entering the company with long-term commitment. Our investment is intended to stabilize the company, strengthen its operations, and ensure its continued activity for the benefit of its employees, passengers, and the Israeli economy."
Workers claim the company's management is pushing forward with measures significantly impacting their future employment, working conditions, and rights, including canceling routes and raising concerns about the company's potential insolvency. They also allege that Arkia's owners are not advancing a pending sale agreement that could significantly aid the company's future, for reasons unclear to the employees.
Advocate Nir Eisenberg, Deputy Chairman of the Transport Workers Union, stated that if the Nakash brothers no longer wish to own Arkia, it is time to finalize the sale and transfer the company to owners who believe in its future. He added that the actions led by Avi Hurumro should not leave hundreds of employees and their families in prolonged uncertainty, emphasizing that Arkia's employees are not a bargaining chip in ownership disputes.
Arkia responded by confirming receipt of the union's dispute declaration, clarifying that the airline's operations continue as usual, all flights are on schedule, and there is currently no impact on the company's activity or service to passengers.
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