February 29, 2024

Arbitration against the background of a collective dispute

Our firm represented Dan South Transportation (2015) Ltd., in an arbitration proceeding that had been brought against it by “Power to the Workers,” the Workers’ Organization at Dan South Transportation, based on claims pertaining to the failure to pay a seniority supplement as required in the collective agreement, when the financial significance of accepting the Organization’s demands would have been an additional cost of hundreds of thousands of shekels each year, commencing from 2023 and onwards.

The Arbitrator, Labor Court Judge (Ret.) Ms. Dina Efrati, handed down an arbitral award which accepted the company’s position, in its entirety, in the main claim, and rejected the demand of the Workers’ Organization. Against the background of the proceeding, a motion has recently been filed in the National Labor Court, to recognize the replacement of the representative Workers’ Organization at the company.

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