The worker strike at ZIM Integrated Shipping Services has officially concluded following a breakthrough agreement with acquiring carrier Hapag-Lloyd. The resolution removes a significant internal obstacle to the planned takeover.
Following intense negotiations between the workers’ union, ZIM management, and Hapag-Lloyd, an agreement in principle has been reached. A central pillar of the deal is Hapag-Lloyd’s commitment to allocate at least $300 million to fund severance packages. This will cover approximately 500 ZIM employees who are slated to retire as part of the transaction.
In addition to severance, workers will receive a sale-related bonus, though the final amount is still being determined.
The remaining workforce will be restructured as the takeover progresses:
- Hapag-Lloyd HQ: Approximately 400 employees will transfer to a new Israeli headquarters that Hapag-Lloyd plans to establish. The union successfully negotiated that these employees must formally retire from ZIM before being rehired under Hapag-Lloyd’s new employment terms.
- FIMI Fund Entity: Around 120 of ZIM’s roughly 1,000 employees will transfer to a new ZIM entity maintained by the FIMI fund.
Following the agreement, about 400 employees have already returned to the office, with the remainder continuing remote work. As part of the deal, all staff will receive full back pay for the strike period, alongside salary grade increases originally due in January.
Furthermore, Union Chairman Oren Caspi and ZIM CEO Eli Glickman agreed to a five-year extension of the collective bargaining agreement. Glickman is expected to finalize the memorandums of understanding with Hapag-Lloyd’s CEO this week, paving the way for the acquisition to proceed.