Arkiea Airline Union Declares Labor Dispute Amid Ownership Changes

The Transport Workers Union of the Histadrut labor federation declared a labor dispute with Arkia Airlines on Thursday, citing unilateral efficiency measures taken at the expense of employees. The union stated that Arkia has been implementing unannounced efficiency measures, including targeted layoffs and detrimental changes to employment conditions by canceling various routes.

This dispute arises as Arkia announced the completion of an agreement to transfer controlling shares from the Nakash brothers to a group of investors led by Yariv Lerner, who will inject tens of millions of dollars. The Histadrut claims that the Nakash brothers' proposed capital injection would dilute the shares held by employees, who collectively own approximately 22.5% of the company through the "Ta'amut Taa" (Employee Corporation).

"It is unacceptable that actions by the controlling shareholders will lead hundreds of employees and their families into ongoing uncertainty," said Nir Eizenberg, Deputy Chairman of the Maritime Division in the Transport Union. "Arkia employees are not a tool in negotiations and are not bargaining chips. Behind the company stand hundreds of employees, families, and an entire passenger public. The Histadrut will not allow Arkia employees to be held hostage in ownership struggles."

Arkia stated that all flights will continue as scheduled and that the labor dispute will not affect the company's operations or passenger service at this time. The company confirmed receipt of the union's notification regarding the labor dispute declaration.