“We will paralyze the company”: Zim workers escalate strike over $4.2 billion Hapag-Lloyd deal
Union warns of sweeping layoffs as government weighs intervention over Israel’s maritime security.
After a 48-hour warning strike, Zim workers have escalated their protest into a general strike, expanding disruptions across the company’s operations. In addition to regular activity, the loading and unloading of specialized vessels, including ships carrying agricultural goods, will now also be halted.
The strike began immediately after Calcalist revealed on Tuesday that German shipping company Hapag-Lloyd and the FIMI fund had won the tender to acquire Zim. Workers say they fear large-scale layoffs under the new ownership structure.
Zim currently employs approximately 800 unionized workers, around 100 employees on personal contracts and about 300 contractor workers. According to Oren Caspi, chairman of the workers’ union, he was informed that only about 120 employees would remain at the new Zim to be established under FIMI’s control. Hapag-Lloyd is expected to establish an R&D center in Israel that would absorb Zim’s technology employees, and some additional workers may be integrated into that operation.
Caspi said he had expected negotiations to begin during the two-day warning strike but claimed that neither management nor the incoming owners initiated talks. As a result, the union decided to escalate to a full strike.
“Ships are already standing idle and damage is accumulating,” Caspi said. “We will paralyze the company if necessary. They will not receive a functioning company without proper guarantees.”
The $4.2 billion agreement to sell Zim was signed on Monday. Under the terms of the deal, Hapag-Lloyd will acquire the company and then transfer Zim’s Israeli operations to the FIMI fund, which will establish a new Israeli shipping company.
FIMI founder and CEO Ishay Davidi said: “FIMI recognizes and believes in the strategic importance to the State of Israel of an independent and strong Israeli shipping company. We are establishing a stable Israeli company, the new Zim, and see Hapag-Lloyd as a significant strategic partner. We intend to build an advanced and efficient fleet with broad logistical capabilities and view this process as a strategic opportunity to create a strong, focused and financially resilient Israeli shipping company.”
Following the signing, Calcalist reported that Transportation Minister Miri Regev is attempting to block the transaction. Regev contacted Minister Dodi Amsalem, who oversees the Government Companies Authority and Zim’s golden share, requesting an urgent inter-ministerial discussion to examine possible steps to halt the sale.
“We believe that all legal and administrative tools at the state’s disposal should be considered to ensure that the golden share serves as an effective safeguard against harm to Israel’s maritime supply security,” Regev wrote.
