Sources inform ''Globes'' that, for the first time, Prime Minister Benjamin Netanyahu intervened in the contract workers dispute, meeting with Minister of Finance Yuval Steinitz, Histadrut chairman Ofer Eini, and Economic Organizations Liaison Committee chairman Shraga Brosh at the Prime Minister's Office last night. Netanyahu instructed Ministry of Finance officials to speed up the talks with the Histadrut (General Federation of Labor in Israel) to prevent industrial action by the Histadrut, which announced a labor dispute on the issue two week ago.
Netanyahu's intervention seems to have had an affect. Ministry of Finance Budget Director Gal Hershkowitz and Director of Wages Ilan Levin met Eini this morning and then Histadrut Trade Unions Division chairman Avi Nissenkorn. Earlier this week, Eini said that he would not launch a strike on the issue at this time, while warning that he would not hesitate to "go all the way" if necessary if the negotiations deadlocked.
The Histadrut is demanding the transfer of some contract workers to civil service collective agreements. The Histadrut will reportedly agree that these agreements will provide job security in exchange for flexibility by employers. In other words, workers can be transferred or fired not only after a disciplinary hearing, which are quite rare, but also on the basis of a negative opinion by the employer.
The Histadrut's consent on this point will make it harder for the Ministry of Finance to oppose the direct hiring of contract workers, since the ministry's main argument over the years has been that rigid collective agreements was the reason for the proliferation of contract workers.
Published by Globes [online], Israel business news - www.globes-online.com - on October 27, 2011
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