ZIM workers in Israel rejected a $4.2 billion buyout offer from Hapag-Lloyd, which had recently undergone revisions. This new offer included promises regarding Asian services, employment, and maritime security, but workers believe these changes are insufficient.
ZIM Workers' Concerns
Oren Caspi, head of the ZIM workers' union, criticized the proposal, stating that the new structure still leaves Israel heavily dependent on foreign-controlled transport, as the Israeli operations separated from this deal will only retain 16 ships. Caspi believes that Israel needs at least 50 ships to access all global trade routes.
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He emphasized in his statements: "Our fleet must be able to cover routes from the Far East to the United States." This statement comes as Hapag-Lloyd's CEO, Rolf Habben Jansen, visited Israel last week and, along with his partner, private equity firm FIMI, presented a new version of this agreement to the government.
Details of the New Proposal and Reactions
The original offer price remains at $35 per share, bringing ZIM's total value to $4.2 billion. However, buyers added new services such as providing weekly services to the Far East to the Israel-controlled business and also strengthened protections related to the government's golden share. They also proposed to achieve greater retention of maritime expertise, IT infrastructure, and employment for sailors in Israel.
Despite this, the number of ships transferred to the Israeli company remains at 16. This agreement has faced significant opposition since its announcement in February. Workers continued their protests by holding strikes, and a committee in the Knesset also raised the question of whether a fleet of 16 Israeli ships would be sufficient to meet logistical needs during wartime.
Political pressure on this agreement increased in July when Israeli Prime Minister Benjamin Netanyahu and Defense Minister Isaac Katz supported the cancellation of the deal, arguing that it does not adequately protect Israel's security interests.
Currently, the future of this contract remains uncertain, and ZIM workers will continue their struggle to maintain control over Israel's maritime fleet.
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