El Al airplane
El Al airplanePhoto: Moshe Shai / Flash90

Following the effects of the Coronavirus and the Health Ministry's decisions, El Al announced on Wednesday a series of immediate streamlining measures, due to the urgent need to reduce wage costs and adjust the workforce in response to the decline in air travel.

El Al CEO Gonen Ussishkin held an urgent meeting with the Chairman of the Transportation Workers Union Avi Edri at the Histadrut and with El Al employee representative Sharon Ben Yitzhak, and gave them an update on the measures that are expected to be implemented in the coming days.

Among other things, it was decided to cut wages for members of the Board of Directors and members of El Al's management as of March 1, amounting to 20 percent.

In addition, layoffs of 1000 temporary and permanent employees are expected, corresponding to a decline in activity and a decrease in income.

Ussishkin demanded that the Histadrut and the workers' representative reduce wages for those with higher wages from among the regular employees of the collective agreement by 20 percent.

In addition, it was decided to stop absorption in the company until a new announcement and to cancel all expenses that are not necessary at this time.

El Al's CEO said: "I am determined to do everything to ensure the future of the company and to act with courage, openness and fairness. It's not an easy day for us and the steps we decided to take are out of pain combined with responsibility and personal example. Pain for the people who have to say goodbye, responsibility to the other El Al members for sharing the intense effort to meet the challenge, and a personal example of the executives significantly cutting their wages."