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Leza L Olson  12/01/2006 12:11:38 PM  From  DB/Inbox:  Leza L Olson

Cable 
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UNCLAS        TEL AVIV 04695

SIPDIS
CXTelA:
    ACTION: POL
    INFO:   IPSC PD IMO RES ECON DCM DAO AMB AID ADM RSO
            CONS

DISSEMINATION: POL
CHARGE: PROG

APPROVED: POL:POL/C MSIEVERS
DRAFTED: POL:ARHOLST
CLEARED: POL:PVROOMAN, ECON:JWITOW

VZCZCTVI458
RR RUEHC
DE RUEHTV #4695/01 3341531
ZNR UUUUU ZZH
R 301531Z NOV 06
FM AMEMBASSY TEL AVIV
TO SECSTATE WASHDC 7939

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. 
 
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Visit Embassy Tel Aviv's Classified Website: 
http://www.state.sgov.gov/p/nea/telaviv 
 
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JONES