Skepticism Voiced on Zim Write-Off

Reports about a $1.5-billion write-off that Zim Integrated Shipping Services is considering offering its creditors have been met with skepticism by the company’s labor leader.

The write-off figure mentioned, which represents only half of the company’s debt, took even Zim workers’ committee chairman Avi Sheetrit by surprise. “If they can carry out the haircut that I’m hearing about, it will be a blow. $1.5 billion? I can’t believe that it will be accepted,” he told Globes.

“In my opinion, the creditors won’t agree to a $1.5-billion write-off, but they’ll have to agree to something. After all, the debt is to me too, and I am affected like everyone through my pension, but it’s sometimes better to get 70 percent than to get nothing.

“Is there another option besides a haircut? They’ve tried everything. Since 2008, we’ve been in a mess. It seems that they’ve concluded that it’s either a haircut or close the business on the thousands of families of Zim employees,” said Sheetrit.

A debt settlement at Zim is said to be on the way after the banks agreed in principle to the write-off, even though they stand to be the biggest losers. However, the Israeli bondholders’ representative still opposes the pending deal.

Sheetrit also denounced Zim’s decision to move its transshipment activity — the unloading of cargo at one port to ship it to another port — from Haifa Port Company to a Greek port.

“Even though I am a union man at Zim, I always try to see to the good of all Israeli workers. But in this case, we’re talking about a business decision of a company at a time when it cannot afford to be hurt by a strike. I met ‘by chance’ Haifa Port workers’ committee chairman Meir Turgeman, and he didn’t consider leveling accusations against Zim’s union either,” Sheetrit said.

On the other hand, Sheetrit spoke in favor of the ports workers making concessions in their job terms.

“I understand the ports workers’ committee and organized labor is important to me, because without it there would be chaos here. On the other hand, I am sure that if the parties sat down like we did, it would be possible to agree on amendments in the labor contracts, which include all kinds of benefits for the workers that may not be suitable for these times.

“For example, the premium awarded in the days of the old cranes is unsuited to the new cranes, which do everything at the touch of a button.”

This article appeared in print on page 7 of the November 25th, 2013 edition of Hamodia.