El Al: cut in labor force imminent

The company is currently implementing a large scale re-organization program which will see the dismissal of some 400 temps and the start of negotiations with worker unions over the fate of 200 regular employees
 
El Al Israel Airlines said last week it had entered negotiations with the El Al workers union and the Histadrut Labor Federation as it plans to cut approximately 10% of its labor force.
 
El Al, which is faced with a sharp decline in tourism, a sharp drop in profits due to the rise in fuel prices, a weaker dollar exchange rate and increased competition is currently implementing a large scale re-organization program which will see the dismissal of some 400 temps and the start of negotiations with worker unions over the fate of 200 regular employees. El Al posted a NIS 126m. loss in the first half of the year.
 
The negotiations come few days after Chief Executive Officer Haim Romano announced a major management restructure that saw seven top positions eliminated.
Meanwhile, it is understood that the management  said it was leaving all options open and was looking at every avenue to cut costs, including ongoing negotiations with the Government to partly cover some of the airline's continuing heavy security burden.