The Histadrut (General Federation of Labor in Israel) has withheld its announcement of a strike over contract workers, after Prime Minister Benjamin Netanyahu again intervened. Netanyahu spoke with Histadrut leaders, Ministry of Finance officials, and business leaders, between midnight and 4 am today.
Yesterday, Histadrut officials said that they expected to announce labor sanctions today, unless a breakthrough was achieved in the talks. It appears that the intervention by Netanyahu, who held a similar meeting last Wednesday, had an effect. The Histadrut was persuaded that he is making an honest effort to reach a solution, and that he accepts in the principle the Histadrut's basic demand to hire as many contract workers in the public sector as government employees.
Sources at the meeting say that Netanyahu pressed the Ministry of Finance officials, including Minister of Finance Yuval Steinitz and Budget Director Gal Hershkowitz, to settle with the Histadrut along the lines of its demand to directly employ the contract workers as possible.
The Ministry of Finance is insisting that the contract workers should he taken onto the payroll, but that, at best, their job terms should be improved, and their rights should be better enforced.
Another meeting with Netanyahu is probable tomorrow, and the Histadrut is willing to give him another chance before it declares a strike.
The Ministry of Finance will reportedly try to persuade Netanyahu that the direct employment of contract workers will increase the public sector and weaken the business sector.
Federation of Israeli Chambers of Commerce president Uriel Lynn sent an urgent letter to Netanyahu on this very point. He said that the negotiations on the matter were liable to result in "disproportionate harm to the freedom of occupation by Israel's business sector."
Published by Globes [online], Israel business news - www.globes-online.com - on October 31, 2011
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