Employees of ZIM Integrated Shipping Services have begun returning to work after the union representing Israeli staff reached a tentative agreement on employment protections and compensation terms tied to the proposed takeover by Hapag-Lloyd.
The agreement follows a strike that disrupted port operations and halted work at ZIM’s headquarters, with union members protesting what they described as insufficient consultation during the final stages of merger negotiations.
TAccording to Israeli business outlet Calcalist, ZIM CEO Eli Glickman and union leaders agreed on key employment provisions:
- 120 employees will remain with the newly structured “New ZIM,” to be owned by FIMI Opportunity Funds.
- Approximately 400 employees will transfer to a new Israeli headquarters that Hapag-Lloyd plans to establish.
- Around 500 employees are expected to retire as part of the transaction, with Hapag-Lloyd allocating at least $300 million for severance payments.
Employees will receive a sale-related bonus, though the final amount has yet to be determined.
The collective labor agreement is expected to be extended for an additional five years.
Union chairman Oren Caspi reportedly expressed confidence that CEO Glickman would honor the terms in final negotiations with Hapag-Lloyd.
The union had earlier warned that of roughly 1,000 employees in Israel, only 120 would retain their positions under the original framework. Protests escalated to include blocking access to facilities in Haifa, Holon, and Ashdod, and preventing Chairman Yair Seroussi from entering company premises.
Final agreements between ZIM and Hapag-Lloyd are expected to be completed this week. The takeover remains subject to approval by Israel’s Companies Authority, other regulatory bodies, and ZIM shareholders, with closing anticipated by late 2026.
