Israel Military Industries to merge into Rafael?
Israel may be about to take another step in privatizing its military equipment suppliers. Of course, the government can't use the word 'privatizing.' Israel’s Globes business daily newspaper reports tonight that the Ministry of Finance and Ministry of Defense have agreed on a plan to merge Israel Military Industries Ltd. (IMI) with Rafael Advanced Defense Systems Ltd. The plan is also endorsed by IMI’s union representatives. A formal announcement is expected by the end of the month.For those who don't know how things work in what's left (and it's a lot despite perceptions abroad) of our socialist paradise, government workers - like IMI's and Rafael's - get salaries and especially benefits that are far more generous than those in the private sector. And they don't want to give them up.
In the past the ministry of Finance insisted IMI should be privatized, a procedure that was not accepted by the unions nor by the ministry of defense, which supported merging the company with one of the country’s two government owned companies – IAI or Rafael. Merging of IMI with privately held Elbit Systems also encountered opposition on privatization grounds.
Both IAI and Rafael companies expressed interest in acquiring IMI, whose portfolio closely matches both company’s activities. It is anticipated that by merging IMI’s activities within Rafael, IMI could become financially stable.
Labels: Histadrut, Israel Military Industries, Rafael
posted by Carl in Jerusalem @ 12:56 PM
1 Comments:
who wudda thunk it?? Government workers get better pay and benefits in the States too!! And their union reps also work directly with their employers, the government to keep everything in the family!!
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