Histadrut declares work dispute over nursing care insurance

Avi Nissenkorn Photo: Avshalom Sassoni

Economic sanctions can begin in two weeks, including in Israel's state education system.

As reported several days ago in "Globes," the Histadrut (General Federation of Labor in Israel) and the Teachers Union have declared a general labor dispute in protest over the long-term nursing care insurance crisis. Histadrut institutions today approved the labor dispute, meaning that economic sanctions can begin in two weeks, including in the state educational system.

The grounds for the dispute are the decision by Capital Markets Authority director Dorit Salinger not to extend the validity of the collective long-term nursing care insurance policies currently held by one million wage earners.

Histadrut chairman Avi Nissenkorn called on Minister of Finance Moshe Kahlon to intervene in the crisis and prevent the overnight termination of insurance for employees. Nissenkorn told "Globes" that he supported a proposal for state long-term nursing care insurance by Minister of Health Yaakov Litzman. The Ministry of Finance, however, is arguing that such insurance will cost the state NIS 6 billion a year. "There are a million people who will suddenly have no insurance," Nissenkorn said. "Imagine that this happened in some other sphere - a million people who suddenly have no pension. A million people whose insurance company collapsed, or whose bank collapsed. There are a million people whose nursing care insurance will suddenly collapse. The consequences are momentous. It's a real disaster."

The problem with collective long-term nursing care insurance policies is that their validity is limited in time; they do not cover the nursing care expenses of most policyholders for the relevant ages - meaning after they reach retirement age. Last year, Salinger extended the policies' validity by one year, while making a commitment that this would be the last such extension.

Published by Globes [online], Israel Business News - www.globes-online.com - on November 7, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Avi Nissenkorn Photo: Avshalom Sassoni
Avi Nissenkorn Photo: Avshalom Sassoni
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