The Histadrut labor federation on Tuesday accused Telrad Networks of scheming to abolish its manufacturing facility in Lod.

In a lawsuit filed at the Tel Aviv Labor Court today, the Histadrut and a union representing some of the workers claimed that Telrad, a telecommunications solutions provider and hi-tech incubator, is planning to dismiss a lot of employees.

About 600 of the company's 1,100 employees are unionized.

Acting through attorney Dror Gal, the workers claim that Telrad breached their collective employment agreement dating from June 2000, and other accords signed between the parties over the years.

The labor representatives asked the court to order Telrad, which belongs to

Koor Industries

(NYSE:

KOR

), to fulfill its agreements and to avoid unilateral measures regarding the workers and their terms of employment.

In June 2000, Telrad agreed to keep its Lod facility operational. However, the labor representatives claim that the company is trying to outsource its manufacturing, with the ultimate aim of shuttering its Lod plant.

The workers also claim that Telrad's chief executive, Reuven Avi-Tal, consistently refuses to meet with their representatives despite his earlier promise to hold such meetings once per quarter.

Telrad has yet to file its response.

A few days ago Telrad began a process of laying off 300 people, a step announced several months ago.