NATIONAL STRIKE SHUTS DOWN ISRAELI GOVERNMENT

UNCLAS SECTION 01 OF 02 TEL AVIV 004695 SIPDIS E.O. 12958: N/A TAGS: ELAB PGOV IS SUBJECT: NATIONAL STRIKE SHUTS DOWN ISRAELI GOVERNMENT SERVICES FOR ONE DAY REF: TEL AVIV 4673 ¶1. SUMMARY Early on November 30, the National Labor Tribunal ordered an immediate end to the strike by federal civil servants declared on November 29 by the Israeli trade union congress Histadrut. The strike was called after Histadrut Chairman Ofer Eini failed to reach agreement with Finance Minister Avraham Hirschson and Interior Minister Roni Bar-on to resolve longstanding labor issues, notably the continued failure of many municipalities to pay their employees, diversion of retirement and training funds contributed by workers, and the government's unwillingness to assign personal responsibility and consequences to the officials who made those decisions. As part of its November 30 back-to-work order, the National Labor Tribunal ruled that no new strike could begin within the coming week, ordered the Treasury to immediately pay any remittances still owed to local municipalities, as well as to pay within a week any salaries still owed by local municipalities that lacked the funds to do so themselves. Negotiations will continue on how to meet future civil servant payrolls and how to resolve the pension issues. END SUMMARY ¶2. The complaints that led to the strike have been building for years. Many municipalities, often but not exclusively Arab, have routinely failed to meet payrolls in recent years. Corruption is often cited, as municipal officials use funds intended for salaries, pensions and training -- including funds contributed by workers -- for other purposes. Political appointments -- including appointments allegedly sought by the Ministry of Interior to repay political favors -- have swelled payrolls in many instances, and many municipalities have borrowed heavily to meet obligations. Those municipalities are now finding it increasingly difficult to find banks willing to make further loans, and a situation that has been increasingly troublesome has reached a boiling point. ¶3. Histadrut called a limited three-day strike last week that was unsuccessful in forcing concessions from the government. The two sides conducted negotiations through the evening of November 28, but could not reach agreement in time to prevent the work stoppage on November 29. The one-day general strike affected many sectors, including all government offices, local authorities, electricity, sanitation, Bank of Israel, some oil refineries, railways, seaports and airports. (See reftel for the impact on travel to Israel.) In addition, telephone services, courts, post offices, and emergency fire and rescue services operated with reduced workforces. ¶4. While legitimate grievances by union members are behind the strike, the timing might also have something to do with internal union politics. Eini has not routinely used strikes or the threat of strikes as negotiating tools and has expressed a desire to, as much as possible, de-politicize Histadrut, contrasting his style to combative former Histadrut leader and current Labor Party leader and Minister of Defense Amir Peretz. However, Eini, who withstood a challenge from a breakaway government workers federation a few months ago, faces an election in May 2007. A journalist well versed in labor issues told laboroff that Eini would prefer to avoid elections by getting all factions to agree that he is the accepted choice, which the contact said would be unusual but not unprecedented. ¶5. The government has stated its intention to privatize Bank Yahav, which could jeopardize the many free services -- considered by Histadrut to be a traditional benefit of federal employment -- the bank provides to civil servants. Including this issue in the list of grievances for municipal employees is, according to the journalist, a strategy to create solidarity throughout Histadrut, including both municipal employees and "elite" unions such as airport and electrical workers that have not traditionally shown interest in issues affecting less prominent affiliates. That solidarity would benefit not only Histadrut's efforts in this strike, but Eini's goal to maintain his leadership position without facing elections. ¶6. The National Labor Tribunal decision provides a breathing space for continued negotiations. But the issues that led to the strike are longstanding problems with no simple solutions, and if Eini can maintain the solidarity of federal and local workers, there remains a distinct possibility of future walkouts by airport baggage handlers, garbage collectors and their brethren. ********************************************* ******************** Visit Embassy Tel Aviv's Classified Website: http://www.state.sgov.gov/p/nea/telaviv You can also access this site through the State Department's Classified SIPRNET website. ********************************************* ******************** JONES