Zim strike halts operations as takeover tensions escalate
Dispute over labor terms threatens $4.2 billion sale to Hapag-Lloyd and FIMI.
Approximately 900 Zim employees covered by a collective agreement have been on strike since Thursday afternoon. The strike follows disputes that arose during negotiations between the workers’ union and management over a new collective agreement, as part of the planned transfer of control of the company.
The talks are being conducted between the union and representatives of Zim’s board and management, alongside representatives of the German shipping company Hapag-Lloyd and the FIMI fund, which are expected to acquire ownership of the company. Negotiations between the parties are set to continue over the weekend, with management aiming to restore normal operations by early next week.
Zim’s workers’ union declared a labor dispute at the beginning of the year, even before the signing of the sale agreement, due to its opposition to transferring control to foreign ownership. The declaration allows employees to initiate a strike at any time. The current action, excluding around 80 employees on personal contracts, has effectively led to an almost complete shutdown of Zim’s operations in Israel, including ship unloading.
Union chairman Oren Caspi said that Hapag-Lloyd is seeking to push hundreds of employees into early retirement under terms that contradict the existing collective agreement at Zim. The company, for its part, said the committee declared a strike despite the parties having reached a preliminary understanding on the terms of a new collective agreement related to the change in control.
Zim is currently a company without a controlling shareholder. About two months ago, Hapag-Lloyd won a tender to acquire the company and partnered with the FIMI fund, to which it plans to sell the Israeli operations. As part of the deal, the two will acquire 100% of Zim’s shares for $4.2 billion. Zim is expected to be delisted from the New York Stock Exchange (NYSE), where it has been traded since its 2021 IPO at a valuation of $1.5 billion.
