Workers at Israeli carrier Zim have gone on strike over labor terms tied to the company's US$4.2 billion sale to Hapag-Lloyd, reported Fort Lauderdale's Maritime Executive.

About 900 employees walked out during talks on a new collective bargaining agreement. Union officials expressed concerns that Hapag-Lloyd planned early retirements for long-serving staff rather than retaining them. The strike has reportedly shut down Zim's local operations in Israel.

The merger deal will see Hapag-Lloyd and Israeli investment fund FIMI acquire all of Zim and delist it from the NYSE. Hapag will retain most global operations and chartered-in tonnage, while FIMI will keep Israel-linked routes and owned tonnage to preserve Zim's national defense role.

The sale has been controversial, with critics warning that the Israeli-owned component will be too small to prosper. This is the second strike since the deal was announced; in February, workers staged a warning strike that ended with a $300 million severance package for 500 staff.

Zim CEO Eli Glickman has announced plans to step down after a six-month notice period, stating that he disagreed with the sale. The board is currently searching for a successor as unions prepare for further negotiations with new leadership.