The Central Bottling Company will lay off 20% of production workers at the Emek Hefer plant

The impact of the strong shekel on exporters is resulting in layoffs at Gat Foods, a manufacturer of concentrates and bases for the global beverage industry, which will lay off 20% of its employees at the Emek Hefer plant. The plant, owned by the Central Bottling Company, employs about 300 workers, meaning approximately 60 of them will be laid off.

Following the decision, the Gat Foods workers' committee and the National Labor Federation declared a labor dispute. The parties have turned to a mediator and are expected to seek solutions, including reducing the number of layoffs, integrating employees into other companies within the group, or providing severance packages, which would prevent the workers from taking industrial action.

Gat Foods produces bases and concentrates alongside various solutions for beverage companies worldwide. About 90% of the company's production is exported, while a small portion serves as a base for the production of Prigat juices at the company's facility in Ashkelon. The ongoing decline in the dollar exchange rate, which dropped below 3.00 shekels this year, is forcing the company to find immediate solutions to falling revenues and adapt its product mix to maintain profitability.

The Gat Foods workers' committee expressed concern that the layoffs might be a first step toward closing production lines in Israel and moving them abroad, though no such intention has been confirmed. The committee stated that if the dispute is not resolved, workers will resort to sanctions and a strike, potentially impacting production and marketing.

Chairman of the workers' committee, Sharon Hajbi, said:

«We call on the heads of the Central Bottling Company not to pull the plug on Israeli industry and not to flee to production abroad under the guise of global crises. To the dedicated workers, we say in the clearest way: the National Labor Federation and the workers' committee stand as a wall to protect you. No worker will lose their livelihood tomorrow morning without a proper safety net. We are managing this struggle responsibly, powerfully, and transparently, and we will ensure that every step is taken only with consent and while fully maintaining your rights and your economic future.»

The Central Bottling Company responded: «This concerns Gat Foods, a company for the production of concentrates and bases for the global beverage industry, which is forced to reduce its export activity from Israel due to economic non-viability resulting from production costs in Israel and currency exchange rates.»