As has been expected in recent months, the Histadrut (General Federation of Labor in Israel) is again threatening a general strike at Egged starting on March 21, "as a result of foot dragging by the Ministries of Transportation and Finance in the negotiations with Egged Israel Transport Cooperative Society Ltd.'s management over the subsidy," the Histadrut said. The long period before that date will allow Egged's management, the Histadrut's leadership, and the Ministries of Transportation and Finance enough time to conduct intensive negotiations for reaching an agreement before more than a million passengers a day are affected.
Histadrut chairman Avi Nissenkorn announced the planned strike, saying "Thousands of dedicated Egged drivers carrying nearly 1.5 million passengers daily are paying a heavy price for the impotence of the state, which has been neglecting the matter for a long time - too long."
The threatened strike is a continuation of a crisis that has been going on for more than a year between the government and Egged, following the expiration of the company's subsidy agreement at the end of 2015. The parties are bitterly disputing the terms of a subsidy agreement for the coming decade.
The government is demanding that Egged sell nearly half of its routes to private companies over the coming decade, leaving it with a 20% market share. The government believes that this measure will yield two benefits: it will provide money to fund the retirement of 3,000 veteran drivers who are Egged members or children of members and increase competition in public transportation.
Egged is in no hurry to agree to reduce its 37% market share, and is also seeking an agreement that will include NIS 1.5 million in funding over 18 years for each worker taking early retirement, amounting to NIS 4.5 billion during this period, in addition to a higher subsidy than that received by other companies where drivers earn half as much as veteran Egged drivers. The government estimates the total cost of Egged's demands at NIS 6 billion.
Published by Globes [online], Israel Business News - www.globes-online.com - on February 20, 2017
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