ZIM workers escalate strike after Hapag-Lloyd acquisition

ZIM employees have escalated strike action over job-security fears following the Israeli company’s acquisition by Hapag-Lloyd.

According to Reuters, around 800 unionised employees out of 1,000 workers began the strike on 15 February at the company’s Haifa headquarters, although there was still activity at other Israeli seaports.

On 17 February, a union leader at ZIM, Ziva Lainer Schkolnik, reportedly told Reuters that since that morning, they have not allowed any level of activity. She said they had stopped vessels at Ashdod and Haifa ports and “we will not let the company work on those ships until they talk with us and we are convinced they are considering the employees”. 

Ms Lainer Schkolnik said, according to the Reuters report, that the union was told by the company’s management that the new ZIM would have 120 employees, meaning nearly 900 workers could be let go.

CS&PT approached Hapag-Lloyd for comment. Hapag-Lloyd senior director corporate communications Nils Haupt responded, “Today [18 February] Oren Caspi, chairman of the ZIM Workers’ committee, told PORT2PORT, that employee representatives met last night with chief executive Eli Glickman, who received a mandate from both the board of directors and Hapag-Lloyd to open negotiations with the workers.”

In this respect, he said Hapag-Lloyd chief executive Rolf Habben Jansen said, “All ZIM´s headquarter employees and management will receive a job guarantee for a defined period after closing, which will be negotiated in good faith and appreciation with the respective labour representatives. Israel will remain a strong location for the combined business of ZIM and Hapag-Lloyd.”

Mr Haupt told CS&PT, “The number 120 was never discussed and never mentioned by Hapag-Lloyd. We have no plans for massive layoffs of ZIM employees.”

CS&PT has approached ZIM for comment.

This comes on the back of a merger agreement, under which Hapag-Lloyd will acquire ZIM in a US$4.2Bn deal. A statement by ZIM said that in connection with the transaction, Hapag-Lloyd has entered into a binding memorandum of understanding with Tel Aviv private equity fund FIMI, under which the Special State Share held by the State of Israel in ZIM is intended to be transferred to a newly created subsidiary of FIMI, subject to approval by the State of Israel.

FIMI will create a new container-network operator and liner-service provider, ’New ZIM’, with owned tonnage, incorporated in Israel. The new container line will start with 16 modern, sizeable, and efficient vessels. The new business, operating under the ZIM trademark, will be owned and run by FIMI, supported by a long-term strategic partnership with Hapag-Lloyd, which includes commercial support for the initial period to allow a structured commencement of operations.

The statement by ZIM added, “Hapag-Lloyd expressed its intention to maintain a significant business presence in Israel, providing for long-term employment of ZIM employees.”

The transaction has been unanimously approved by ZIM’s board of directors, and is expected to close by late 2026, subject to approval by ZIM shareholders and upon satisfaction of customary closing conditions, including approvals by regulatory authorities and the State of Israel pursuant to the requirements of the Special State Share. Until the closing of the transaction, Hapag-Lloyd and ZIM will remain separate independent companies and will continue to maintain "business as usual", ZIM said in its statement.