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Nochi Dankner moves to save 2,500 jobs

December 24, 2009. Globes: Ilanit Hayut

IDB Holding Corp. Ltd. (TASE:IDBH) chairman and CEO Nochi Dankner yesterday announced that he has suspended for six months a proposal for Shufersal Ltd. (TASE:SAE;Pink Sheets: SSLTF) to take over the responsibility of putting the products of food companies on the supermarket chain's shelves. This job is currently carried out by employees of the food companies.

Dankner added that Shufersal would hire many of the employees fired by the food companies, and that these new employees would be included in Shufersal's collective labor agreement.

Dankner's announcement followed a "Globes" expose, which found that the measure would cost the job of 2,500 employees of the food companies over the coming year. Shufersal had reportedly begun hiring employees through job agencies to carry out the work to replace the workers who are currently employed by the food companies. Dankner's announcement followed an inquiry by Histadrut chairman Ofer Eini as well about the measure.

A Dankner aide said today, "The shelves belong to Shufersal, and it will arrange them itself, as is the practice at all chain's worldwide. Shufersal will arrange matters with its suppliers to ensure that hundreds of struggling employees won't lose their jobs, even if they are not its own employees."

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