Last Tire Factory Workers in Israel Secure Significant Severance

Following the decision that Alliance, Israel’s sole tire manufacturer, will cease operations after 74 years, the Histadrut has secured a significant severance package for the laid-off employees.

Yokohama, Alliance’s Japanese parent company, decided to shut down the factory in Hadera at the end of 2024, resulting in the termination of all positions.

A comprehensive labor agreement was reached between the Histadrut, Alliance management, and the workers’ committee, ensuring a substantial severance package for all affected employees.

The agreement includes a comprehensive severance package totaling approximately 100 million shekels. It was agreed that employees would receive five months of full salary to assist with the transition. The severance pay for employees with over 15 years of service will be 125% of the legally mandated amount, while those with over 25 years will receive 200%.

To respond to exceptional circumstances, a special committee has been established to handle cases that don’t fit the standard criteria. This committee was allocated a budget of 1.5 million shekels.  

In collaboration with the employment service and various local businesses, the Histadrut has organized job fairs to assist laid-off employees in finding new employment. Approximately half of the employees have already secured new jobs.

“The Alliance factory was a cornerstone of the region and provided a livelihood for thousands of workers for many years,” stated Yermiyahu Davidov, Chairman of the Alliance Workers’ Committee. “I am hopeful that this agreement will help our workers get back on their feet and return to the workforce as soon as possible.”

The Histadrut remains committed to supporting the laid-off Alliance workers during this challenging time and will continue to assist in their job search efforts.