A survey conducted by the Manufacturers Association among industrial enterprises indicates that if the port workers make good on their threats and commence a strike at the end of the month, 63% of enterprises plan full or partial suspension of activity. Twenty-five percent intend to lay off workers and 80% intend joining a class action, if one is brought. This was reported today by Danny Klein, Battle for Industry HQ chairman at the Manufacturers Association.
The survey was conducted among 142 enterprises, due to an assessment that at the end of November or the beginning of December, port workers will again resort to sanctions, this time of a more extreme character.
The survey also indicates that if the ports remain on strike for a long time, industrial enterprises will suspend activity within 24 days on average. The enterprises assess average damage per plant from a week’s strike at $200,000, two weeks at $540,000, and a month at $3.2 million damages.
Klein said “This means NIS 1.3 billion direct damage to industry from a one-week ports strike, damage of NIS 3.5 billion if the strike lasts two weeks, and damage of NIS 20.7 billion for a month-long strike.”
The enterprises taking part in the survey said they imported 57% of their total procurement via the ports and used the ports for 45% of their exports. 66% of enterprises noted that their physical distribution activities were non-seasonal.
The enterprises report that each of them imports 19 containers per month on average via Haifa port, 11 via Ashdod port, and one container on average via Eilat port. 56 containers are exported on monthly average per plant via Haifa port and four via Ashdod port.
An examination of the use of alternatives to Israelis ports showed that 22% of enterprises can use the port of Aqaba as an alternative, and 23% mentioned that they could use Port Said.
