Histadrut chief demands pensions safety net

Ofer Eini also called for government intervention to prevent layoffs.

Histadrut (General Federation of Labor in Israel) chairman Ofer Eini has rolled up his sleeves to respond to the financial crisis. He is now threatening that the Histadrut will not stand idly by if the Ministry of Finance fails to provide a safety net for the pension funds and provident funds, and if it does not publish a substantial plan for preventing worker layoffs.

In a letter sent to Minister of Finance Ronnie Bar-On this morning, he implores him to enter into immediate negotiations on these two matters.

"The Ministry of Finance eliminated the safety net for workers in 2003, because it wanted a free market, and it sent us to the stock exchange. But the free market has now finishing the workers' funds, and it is up to the Ministry of finance to restore the safety net," said Eini, talking to "Globes".

Asked whether he intended to declare a labor dispute if such a net is not forthcoming, he responded, "Everything is open."

Eini recalled that, several months ago, he was the first to warn of tens of thousands of layoffs, but, according to him, no-one at the Ministry of Finance would listen. "I gave the government a chance, but it must now remember that intervention in the crisis is not its right but its duty," he says.

Eini claims that a Ministry of Finance plan to set up a fund to help employers is not enough to prevent layoffs, especially in the periphery. "According to what I hear, we're talking about a fund with many limitations, so that I'm not at all sure that anyone will use it. I propose establishing a linkage between workers and employers, so that a facility that promises not to lay off workers, will get greater aid."

Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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