The Israeli Government has signed an agreement with the main workers union in preparation for the privatization of Haifa Port, one of the three largest seaports on the Mediterranean coast.

Under the deal, one in five employees will need to choose to depart, at a cost of ILS2.5 million (US$664,700) per person, and that the port will be sold off in cooperation with the employees and their union. In addition, the State of Israel agrees to forgo any dividends from the sale.

The agreement also states the protection from collective firing for 10 years after the privatization of the port workers and other employees. The protection does not cover individual layoffs.

The tender for the sale will be released within six months. Plans for privatisation include upgrading and deepening the port so it can receive bigger container ships in a bid to boost Israel’s economy. The Transportation Ministry will also open new access routes to allow for equal competition with other ports.