Arkia Airline Faces Bankruptcy Threat Amid Management-Union Dispute

The Israeli airline Arkia is experiencing a deepening crisis that threatens hundreds of employees and the company's future. The Histadrut Transport Workers Union has officially declared a labor dispute, citing management's plans for large-scale reorganization and staff reductions without consulting the workers' committee. The union also accuses management of artificially delaying a potential sale of the company.

According to the Histadrut, Arkia's owners are taking unilateral actions that jeopardize employee jobs, working conditions, and social benefits. These actions include planned staff cuts, organizational restructuring, and the closure of unprofitable routes. The union emphasizes that decisions impacting employees should not be made without prior dialogue with the workers' committee.

Concerns are growing among staff that the current ownership's policies could weaken Arkia's market position and lead to insolvency. The uncertainty surrounding a potential change in ownership has further escalated tensions. While negotiations for the sale of Arkia are reportedly in an advanced stage, which could provide necessary investment, the current owners are accused of intentionally delaying the deal without explanation.

Nir Eisenberg, Deputy Chairman of the Histadrut Transport Workers Union, criticized the owners and Avi Horomer, representative of the majority shareholders. Eisenberg urged them to cease blocking the sale if they are not interested in the airline's future and to transfer the company to investors willing to commit to its development. He stressed that Arkia's employees will not be used as leverage in negotiations and that the union will protect the interests of hundreds of families and thousands of passengers.