MA Industries reaches deal with workers over sale

TEL AVIV (BestGrowthStock) – MA Industries (MAIN.TA: ) on Sunday reached an agreement with its workers that paves the way for the Israeli agrochemical company’s sale to China National Chemical Corp.

MA workers had threatened to strike to protest possible job reductions resulting from the sale and the two sides entered negotiations to protect workers’ interests.

Under the agreement, MA industries, the world’s No. 7 agrochemicals maker, committed to maintaining production in Israel and not transfer it abroad at least until June 2017, the company and the Histradrut union said in a joint statement.

No workers will be sacked but to improve efficiency employees aged 57-67 will be able to take voluntary retirement. In 2011, up to 70 workers are expected to retire voluntarily with up to another 130 leaving in 2012 with improved retirement benefits.

Last month, the Histadrut sent MA notice it was weighing a strike at its plants in southern Israel.

The union feared hefty job cuts as a result of the proposed deal, in which ChemChina would own 70 percent of MA. The deal values MA at $2.7 billion [ID:nLDE69A0TQ]

MA is a subsidiary of Koor Industries (KOR.TA: ), which is a part of the IDB Group (IDBH.TA: ). Under the deal Koor would retain 30 percent of MA.

Shares in MA closed up 2 percent to 18.64 shekels.

($1 = 3.64 shekels)

(Reporting by Tova Cohen; Editing by Michael Shields)

MA Industries reaches deal with workers over sale