Workers dismissed by
(Nasdaq:ECIL) are organizing to file a class action suit against the company regarding their severance pay, TheMarker.com has learned.
Last week ECI announced that it is dismissing 1,000 employees.
Their salaries had been comprised of a base wage plus costs for maintaining a car. The workers claim that even people who did not own cars received costs. They say the company intends to compensate them according to their base pay, not including car maintenance.
A labor expert, advocate Hila Porat, of the Trendline group says that in principle, genuine car maintenance costs added to salaries are not factored into severance pay. But if the workers prove that in ECI's case car maintenance costs were actually part of the base pay, the company will have to include that component in its compensation.
The company's response could not be obtained as of writing.