The strike at Zim Integrated Shipping Services has ended following an agreement in principle between the workers' union, Zim management, and acquiring carrier Hapag-Lloyd. The development removes an obstacle to the planned takeover.
Employees returned to work after negotiations led to a preliminary framework. Under the proposed structure, around 120 of Zim's approximately 1,000 employees will transfer to a new Zim entity to be maintained by the FIMI fund. Around 400 employees will move to an Israeli headquarters that Hapag-Lloyd plans to establish.
© Hapag Lloyd
Hapag-Lloyd is expected to allocate at least US$300 million to fund severance payments for approximately 500 employees who will retire as part of the transaction. Workers will also receive a sale-related bonus, although the amount has not yet been finalized.
About 400 employees have returned to the office, while others continue to work remotely. All staff will receive full pay for the strike period, as well as salary grade increases that were scheduled for January.
Union chairman Oren Caspi and Zim CEO Eli Glickman agreed to extend the collective bargaining agreement for five years. Employees transferring to Hapag-Lloyd will formally retire from Zim before being rehired under new employment terms.
Zim's management is expected to finalize the understandings with Hapag-Lloyd's CEO, allowing the transaction to proceed.
Source: Container News
