Histadrut Declares Labor Dispute at Dan Public Over Contractor Hiring

The Histadrut declared a labor dispute at Dan Public Transportation affecting 2,300 workers over the unilateral hiring of contract drivers and disputed disciplinary fines.

Histadrut Declares Labor Dispute at Dan Public Over Contractor Hiring
Photo-illustration WireIsrael: AI Generated

The Histadrut Transport Workers Union declared an official labor dispute at the Dan Public Transportation company today (Tuesday). The measure affects approximately 2,300 employees and stems from what the union describes as unilateral moves by management to hire hundreds of contract drivers under terms that differ from existing collective agreements.

At the core of the dispute is management's plan to absorb hundreds of drivers without collective arrangements or agreements with employee representatives. The union asserts that despite repeated requests to negotiate, the company has failed to provide full transparency regarding the wages and employment conditions of the new hires while continuing its unilateral course.

Furthermore, employees claim that the company has attempted to impose sweeping penalties, including 40-hour fines for procedural infractions, and has penalized drivers without conducting proper disciplinary hearings.

"Regrettably, we are forced to take drastic measures to halt the unilateral actions of management," said Uri Matoki, head of public transport at the Transport Workers Union. "We cannot allow employees to be harmed and different classes of workers to be created within the company. We call on Dan management to come to its senses and engage in dialogue before we are forced to take organizational action."

This development follows a transaction last month in which Dan shareholders sold a 5% stake in the company for 132 million NIS. This completed the second phase of a buyout granting a consortium—comprising Clal, Leumi Partners, and Mizrahi-Tefahot under the leadership of Dan CEO Ophir Parnes—a 57% controlling stake, with an initial public offering also under consideration.

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