Histadrut federation declares labor dispute, paving way for public sector strike
In a unanimous decision Tuesday, the heads of the Histadrut labor federation announced an official labor dispute in response to the Finance Ministry’s proposed pay cuts in the salaries of public sector workers amid the financial crisis created by the pandemic.
The announcement of an official labor dispute is a step in the legal process that could eventually allow for government workers to go on strike if an agreement is not struck between the disputing parties.
Amid calls for government officials to address the ever-widening salary gap between public and private sector workers, and with Israel facing soaring unemployment rates, the Finance Ministry proposed a plan to significantly cut the salaries of public sector workers for 27 months, beginning in October of this year. These proposed cuts are projected to free up NIS 4 billion ($1.2 billion) in government spending as part of belt-tightening measures during the coronavirus pandemic.
Talks between the labor federation and the Finance Ministry broke down early this week after the ministry proposed 10 percent pay cuts for all public sector employees making over NIS 20,000 ($5,900) and smaller cuts for those making NIS 7,000 to 20,000 ($2,080-$5,960).
In response to the plan, Histadrut head Arnon Bar-David accused Finance Minister Israel Katz of “doing PR for himself and trying to avoid the political situation [the ongoing coalition crisis] by attacking public sector jobs.”
“We are used to people not thanking public sector employees, but this contempt?” he said. “Katz is facing us like a bully. Even if I thought a deal could be reached, it will be hard to close it after this conduct,” he added.
“The finance minister,” Bar-David continued, “does not understand that on March 10, the public sector gave him and the prime minister the ability to operate freely during the [coronavirus] crisis… if we were looking to cause trouble, then we would not have acted responsibly and stepped up to the plate by going on furlough for a month and a half at our expense.”
In the official statement the Histadrut submitted to the Labor and Welfare Minitry, the federation claimed that the Finance Ministry intends to take “unilateral action that will have a substantial, direct and significant impact on the rights and working conditions of employees… disregarding their representative body and even their basic rights to freedom of association and collective bargaining.”
This dispute comes after the Finance Ministry’s top professional official, Shaul Meridor, resigned Sunday as head of the Treasury’s budget department in protest of the government’s recent economic policies, after months of infighting between him and Katz. In an interview, Meridor accused Katz of fomenting an atmosphere of “terror.”
Unemployment has soared to 21 percent since the start of the pandemic, as Israel’s economy suffered its worst contraction in decades.
Israel has also been without a state budget since 2019 and may end 2020 without one, thanks to an ongoing fight between Likud and its Blue and White coalition partner over whether the budget should include 2021 as well. Many see the battle as a manufactured crisis designed to help Prime Minister Benjamin Netanyahu stay in power without having to make good on a rotation agreement with Blue and White leader Benny Gantz.