ICL Group stock hits peak since May after labor agreement

Shares of ICL (TASE:ICL ) Group climbed 6.3% today to reach their highest intraday level since May 24. The surge came on the heels of an announcement that Dead Sea Works Ltd., a subsidiary of ICL Group, has reached a new collective labor agreement.

The deal was finalized with the Dead Sea Works Workers Council, the General Organization of Workers in Israel (Histadrut), and the Histadrut’s Negev District branch.

The newly signed labor agreement is set to be retroactively effective starting from October 2022 and will remain in force until the end of 2027. It also includes a provision that grants the Histadrut and the Dead Sea Works Workers Council the option to extend the agreement's duration through the end of 2028.

As part of the financial implications of the agreement, ICL Group anticipates an expense of approximately $8 million for the fourth quarter. This expense is primarily attributed to the signing bonus that is part of the labor agreement.

Furthermore, ICL Group has assessed that the additional annual cost incurred from the implementation of this agreement is not expected to have a material impact on its financial position.

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Source: Investing.com