Tnuva Workers Get Bonus, Call Off Sanctions

YERUSHALAYIM (Hamodia Staff) -

Tnuva employees agreed to call off sanctions on dairy deliveries on Thursday after winning a larger bonus from the sale of the company to China’s Bright Foods, Globes said.

Tnuva employees and representatives of the owners Apax Partners and Mivtach-Shamir Food Industries reached an agreement calling for an employees bonus of NIS 137 million. In return, the employees will resume full production, ending a threatened shortage of dairy products leading up to Shavuos.

The money will be paid after the sale to the Chinese government’s Bright Food Group is completed. Last week an agreement was signed by Apax to sell its 56% stake in Tnuva to Bright Food at a company value of NIS 8.6 billion.

Meanwhile, Tnuva published its first quarter results Thursday. Net profit fell 3.1% in the first quarter of 2014 to NIS 86 million from NIS 89 million in the corresponding quarter while revenue was down 1.8% to NIS 1.72 billion over this period. The company blamed the fall in profits on the rise in companies tax with gross profit actually up 6% over this period to NIS 483 million.