SODA Sodastream International Ltd. - Ordinary Shares (delisted)

SodaStream International Ltd. criticized Israeli authorities Monday for refusing to renew work permits for its 74 Palestinian factory workers. The government said its priority was jobs for Israelis.

The Palestinian workers had been commuting to the Lehavim factory in southern Israel from the Israeli-occupied West Bank. The countertop carbonation maker closed its West Bank factory last year after pro-Palestinian groups urged a boycott of SodaStream products.

Chief Executive Daniel Birnbaum said in an interview that it was "disturbing" and "unacceptable" that the Israeli government denied the permits for the Palestinians, even after he appealed to several government ministers.

"It's troubling me as an Israelite and Jew," said Mr. Birnbaum, who called the factory "an island of peace" that employed Israelis and Palestinians.

Israel's policy is "to give priority to the employment of Israeli workers," and authorities will continue to assist the factory in "an equitable way," an official in Prime Minister Benjamin Netanyahu's office said Monday.

The layoffs come at a tense moment between Israelis and Palestinians. Palestinians have launched a wave of stabbing, shooting and car-ramming attacks against Israelis in recent months.

Since September, Palestinians have mounted more than 300 attacks and attempted assaults against Israelis, killing more than 30 civilians and soldiers, according to the Israeli foreign ministry. More than 150 Palestinians have also been killed by Israeli security forces, largely as a result of attacking Israelis.

Israeli officials have said the attacks are being conducted by lone-wolf Palestinian assailants and blame the violence on incitement by Palestinian officials online and in mosques.

Palestinian officials have said the assaults are a result of a lack of political horizon for peace talks and Palestinian disaffection with living under Israeli occupation for nearly half a century.

Despite the violence, Israel has issued 58,282 work permits for Palestinians as of Feb. 1, up from 52,647 a year earlier, according to government data.

SodaStream, based in Airport City, Israel, said in 2014 that it would shift production at its controversial Mishor Adumim factory in former Arab territory settled by Israelis to the Lehavim factory. The Mishor factory employed about 500 Palestinians before being closed last October.

The move followed boycott calls from groups including Campaign for Boycott Divestment and Sanctions that urged consumers to dump SodaStream machines unless the company pulled out of the disputed territory.

Mr. Birnbaum said SodaStream initially requested permits for 350 Palestinian workers but that the Israeli government only granted 74 permits, which were renewed three times for a few months at a time.

He said production will continue at the Lehavim plant, which has about 1,100 workers, and that SodaStream will continue to press the Israeli government to grant work permits for Palestinians.

If SodaStream doesn't get permits, the company will look into buying supplies from Palestinian territories to help provide jobs and income, he added.

Write to Mike Esterl at mike.esterl@wsj.com and Rory Jones at rory.jones@wsj.com

(END) Dow Jones Newswires

February 29, 2016 18:45 ET (23:45 GMT)

Sodastream International Ltd. - Ordinary Shares (delisted) (NASDAQ:SODA)
Historical Stock Chart
From Apr 2024 to May 2024

Sodastream International Ltd. - Ordinary Shares (delisted) (NASDAQ:SODA)
Historical Stock Chart
From May 2023 to May 2024