Employees at Israeli container shipping company ZIM have started strike action following the announcement of a takeover by Hamburg-based Hapag-Lloyd. According to union representative Ziva Lainer Schkolnik in Haifa, around 800 of 1,000 employees have walked off the job.
"Since this morning, we are not allowing any operations," she stated. "We have stopped several ships at the ports of Ashdod and Haifa." Ships already docked are not being unloaded. The strike began after the sale plans were announced on Sunday.
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Under the approximately US$4.2 billion acquisition by Hapag-Lloyd, part of ZIM's business, comprising 16 ships, is to be spun off into a "New Zim." This entity will be transferred to an Israeli investment fund and will be the only entity subject to the Israeli state's special rights at ZIM. According to the union, "New Zim" is expected to employ 120 people, with about 900 jobs at risk. Lainer Schkolnik also stated that the new entity would not be viable on its own.
Hapag-Lloyd stated that jobs at ZIM's headquarters and in management are secure. A spokesperson said the company is prepared to engage in talks with employee representatives. "Israel will remain a strong base for ZIM and Hapag-Lloyd in the long term." The spokesperson added that the spun-off "New Zim" is not too small and that companies of similar size operate successfully. The company will work closely with Hapag-Lloyd.
Following the announcement of the definitive merger agreement between ZIM Integrated Shipping Services Ltd. and Hapag-Lloyd, ZIM's President and CEO Eli Glickman addressed customers regarding operational continuity.
Glickman stated that all obligations and contractual commitments will continue to be honored in accordance with their terms. Service levels will remain unchanged during the transition period. Operational collaboration with Hapag-Lloyd will remain limited to existing vessel-sharing and slot charter agreements.
ZIM indicated that maintaining customer confidence and ensuring continuity and operational stability remain priorities while the transaction proceeds, subject to shareholder and regulatory approvals.
Source 1: Container News
Source 2: Market Screener
