'There won't be gas on the holidays': Pazgas workers escalate sanctions, closing branches across Israel

'There won't be gas on the holidays': Pazgas workers escalate sanctions, closing branches across Israel

JERUSALEM — The labor dispute at Pazgas, one of Israel's largest gas distribution companies, took a sharp turn this week as employees began shutting down branches to the public and halting payment collections from business clients, raising fears of supply disruptions ahead of the Tishrei holidays.

Starting today, the Kiryat Gat branch is closed, with additional closures planned for branches in Jerusalem, Ramla, Dimona, and Tiberias next week. The workers' committee is threatening further escalation in the coming weeks, warning that the gas supply could be significantly hit just as Israeli families prepare for Rosh Hashanah and Sukkot.

The move marks a dramatic intensification of a labor dispute that has been simmering for roughly six months. Employees declared the dispute demanding improvements to wages and employment conditions, and while attempts were made in recent months to bridge gaps with management, negotiations collapsed about a month ago. Since then, no dialogue has taken place between the parties, according to the committee.

Kiryat Gat branch closed as sanctions begin

The first concrete step in the new sanctions wave took effect today with the closure of the Kiryat Gat branch. Located in the southern district, the city has grown into a major industrial hub in recent years, home to a sprawling Intel manufacturing campus and a range of logistics and food companies. The branch closure there is symbolic as much as practical — Kiryat Gat represents the heart of Israel's southern development towns, where gas delivery is a lifeline for thousands of households.

According to the workers' committee, the sanctions will expand next week to include branches in Ramla, Jerusalem, Dimona, and Tiberias. In addition to closing these branches to the public, employees will refrain from collecting payments from business clients in the commercial department. The committee says this is only the beginning.

"Next week the branches in Ramla, Jerusalem, Dimona, and Tiberias will be shut down, with no collections whatsoever taking place in the business department," the committee warned. "As long as the CEO doesn't come to his senses, the sanctions will continue to escalate, there will be disruptions at all company facilities and services, and the gas supply will be hit significantly, to the point that there won't be gas on the holidays."

Workers cite low wages amid company profitability

At the center of the dispute are wages. The workers' committee chairwoman, Racheli Saadia-Gol, painted a stark picture of the financial pressures facing employees, many of whom earn around 7,000 shekels a month — a figure that falls well below the average Israeli wage and is increasingly difficult to live on given rising housing costs and inflation.

"Pazgas makes millions, but insists on employing its workers for wretched salaries," Saadia-Gol said. "In every situation, we provide the best service, including during wars, amidst missile falls, but we can't make ends meet on salaries of 7,000 shekels."

Her comments carry particular weight in the current security climate. Pazgas employees have continued working through multiple rounds of conflict, including rocket barrages from Gaza and Hezbollah, delivering gas to homes and businesses across the country. The committee's message is clear: workers have shown loyalty and sacrifice, and they expect the company to show the same in return.

"Pazgas workers deserve more. They deserve to have their work valued, they deserve to be treated like human beings, and they deserve to earn a proper salary that reflects their level of commitment and sacrifice for the company, especially when the company is profitable," Saadia-Gol added.

Management accused of 'steamroller conduct'

The committee's frustration is directed squarely at the company's leadership. Saadia-Gol accused the CEO of "steamroller conduct," saying that after blowing up negotiations, management has not held any dialogue with the committee for weeks.

"Unfortunately, the CEO chooses to continue with his steamroller conduct, and after blowing up the negotiations, he hasn't held any dialogue with the committee for weeks. This cannot continue," she said.

The breakdown in communication is a familiar pattern in Israeli labor relations, where disputes often escalate rapidly once direct talks collapse. In this case, the timing is particularly sensitive. The Tishrei holidays — Rosh Hashanah, Yom Kippur, and Sukkot — are a peak period for gas usage across the country, as families host large meals and many households rely on gas for cooking and heating.

Pazgas insists supply will continue

Pazgas, for its part, pushed back against the committee's warnings. In a statement, the company said: "Gas supply during the holidays will continue as usual, with no concern of harm to the public. We are sorry that instead of holding substantive dialogue, elements in the committee choose to manufacture headlines based on baseless claims."

The company's response reflects a common strategy in Israeli labor disputes — downplaying the impact of sanctions while accusing workers of seeking media attention. But the committee's actions on the ground, including the immediate closure of the Kiryat Gat branch, suggest that the dispute is far from rhetorical.

A familiar story in Israel's essential services

The Pazgas dispute echoes similar labor battles in Israel's essential services sector. In recent years, workers at the Israel Electric Corporation, the ports, and the railways have all used the threat of disruption during holiday periods to press their demands. The strategy is simple: the holidays are when the public is most dependent on these services, and the pressure is most effective.

For Pazgas, the stakes are high. The company is a major player in Israel's gas distribution market, serving households and businesses across the country. Its customer base includes not only private homes but also restaurants, factories, and agricultural operations that depend on a steady supply of gas for cooking, heating, and industrial processes.

The closure of branches in Jerusalem, Ramla, Dimona, and Tiberias next week would hit a broad cross-section of Israeli society. Jerusalem is the country's largest city, with a dense population that relies heavily on gas for cooking. Ramla is a mixed city in the center of the country with a significant industrial zone. Dimona, in the Negev, is home to a large working-class population and the nearby nuclear research center. Tiberias, on the shores of the Sea of Galilee, is a major tourism hub in the north.

The broader economic context

The dispute also comes against a backdrop of broader economic pressures in Israel. The cost of living has risen steadily over the past year, with housing prices and food costs climbing. For workers earning 7,000 shekels a month, the squeeze is acute. According to the Central Bureau of Statistics, the average monthly wage in Israel is around 12,000 shekels, meaning Pazgas workers are earning well below the national average.

The committee's demand for better wages is not just about fairness — it is about survival. In a country where the cost of a modest apartment in a development town can easily exceed 1 million shekels, and where the price of a basic basket of groceries has risen by double digits in recent years, a salary of 7,000 shekels leaves little room for error.

What happens next

The coming days will be critical. The committee has signaled that it is prepared to escalate further if management does not return to the negotiating table. The threat of a significant disruption to the gas supply ahead of the holidays is a powerful bargaining chip, and one that the company cannot afford to ignore.

For now, the public is caught in the middle. Families planning holiday meals are watching the news with concern, wondering whether they will be able to cook their festive dinners. Restaurants and food businesses are equally anxious, as a disruption in gas supply could force them to close their doors during one of the busiest periods of the year.

The Pazgas dispute is a reminder that in Israel, even the most basic services can become a battleground. As the holidays approach, the question is whether management and workers can find a way to bridge their differences — or whether the threat of empty gas tanks will become a reality.

By Hannah Berg, Staff Writer

This article was produced with AI-assisted research and editorial support. Sources: The Jerusalem Post.