Even as the Ministry of Finance intervenes in the corporate government and bond markets and the Bank of Israel intervenes in the foreign currency market, the government is not intervening in the job market even as hundreds of employees are losing their jobs as the economic crisis worsens.
The Histadrut (General Federation of Labor in Israel) is not satisfied with the attention promised to it and employers by Minister of Finance Ronnie Bar-On and other officials; the Histadrut is demanding that the government act to stop the wave of layoffs. It is calling on the Ministry of Finance to seriously weigh proposals made by Histadrut chairman Ofer Eini for the government to directly pay part of the salaries of employees in financially struggling enterprises in outlying areas.
The Histadrut emphasizes the need for targeted aid in outlying areas, where unemployment is significantly higher than the national average. It adds that the increase in unemployment will only add to the state's economic burden in the long term in the form of unemployment benefits.
Sources at the Histadrut claim that Ministry of Finance officials are aware of the problem of layoffs. "They told us that they it scares them and they are preparing to deal with the problem. We believe that they will ultimately intervene even if they have to pour money," said a Histadrut source.
Published by Globes [online], Israel business news - www.globes-online.com - on November 6, 2008
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