The government is seeking to give the Antitrust Authority the authority to discuss competition relating to unions at corporations if the unions' activity harms or is liable to harm competition. This means that not only companies and their executives are liable to be suspected of abusing their monopoly status; so are employees and their representatives, if they use the power as employees in a monopoly that provides an essential service, to prevent competition, even though the unions' position is that their actions are intended to protect the workers' rights.
In practice, this means that the labor courts will not be the only venue for hearings on employees' affairs in cases that harm competition. The wider meaning is that if and when the reform in Israel Electric Corporation (IEC) (TASE: ELEC.B22) or the seaports result in labor sanctions, strikes, and employees' actions that harm competition, the government can use the Antitrust Authority to petition the Restraint of Trade Tribunal to set terms for back-to-work orders.
Officials at the Prime Minister's Office, the Ministry of Finance and the Ministry of the Economy have been discussing the matter with Attorney General Yehuda Weinstein and Deputy Attorney General Avi Licht.
No position has been reached to close the legal disagreements on this matter: Can the Restraint of Trade Tribunal's intervene in cases involving employees at monopolies under current laws covering the tribunal and/or the labor courts, or will one of the laws have to be amended, and if so which one? Another question is over the practical effect of an amendment: assuming that the Restraint of Trade Tribunal has the authority to act in the case of a monopoly, how will it enforce its authority on the company's employees and their unions, which are harming competition?
The parties are also discussing social aspects of the matter. How would the public react to the counterargument by the companies' workers committees and the Histadrut (General Federation of Labor in Israel) that the government is harming workers' rights, and how could the government respond? In addition, labor court judges will strongly oppose any such legislation, as they have been depicting themselves in recent years as increasingly in favor of strong unions. These judges already see the discussions as harming their exclusive authority in labor relations.
Weinstein's position is to wait for an actual case: if and when a workers committee at a monopoly takes steps that harm competition and the Antitrust Authority petitions the Restraint of Trade Tribunal, and its hearing will be subject to the Attorney General's opinion. His position has resulted in a kind of balance of terror between the monopolies and Antitrust Authority director general David Gilo, with neither side sure of Weinstein's future position.
Published by Globes [online], Israel business news - www.globes-online.com - on January 19, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014