Israel's main labor union declared a strike on Wednesday that caused delays at Ben Gurion airport, and affected banks, hsopitals, government offices, trains, the stock exchange, and more, after talks with the government failed to produce an agreement on the status of workers employed through labor contractors.

Finance Minister Yuval Steinitz called the strike unnecessary, saying it could cost the economy billions of shekels if it continues. He accused the Histadrut labor federation of being entrenched in its positions.

Open gallery view Flights were delayed at Ben Gurion airport due to general strike, Feb. 8, 2012. Credit: Moti Milrod

Histadrut chairman Ofer Eini said that the length of the strike now depends on the Prime Minister Benjamin Netanayhu and Minister of Industry, Trade and Labor Shalom Simhon.

Steinitz and Eini met on Tuesday in Jerusalem in a bid to reach an agreement over outsourced workers' conditions - but both said they did not believe a general strike the Histadrut planned for Wednesday could be avoided.

Netanyahu has been kept updated on negotiations and is reportedly considering intervening to end the crisis.

The High Court of Justice rejected a petition by the Federation of Israeli Chambers of Commerce against the strike on Tuesday. The court said it did not see a reason to intervene at this time in the ruling of the National Labor Court to allow the strike to go ahead, despite the heavy damage it would cause.

Meanwhile, the Histadrut and the Coordinating Bureau of Economic Organizations - which represents private employers - have reached an agreement in principle that meets the Histadrut's main demands with regard to outsourced workers. According to the agreement, which has not yet been signed, outsourced workers who work full time and who have been working for at least one or two years would be hired directly by their employer instead of working for an employment agency as they do now. Workers who continue to work for an employment agency would have their salaries and benefits brought in line with those of regular employees.

The agreement was reached on Tuesday between Eini, the coordinating bureau's chairman, Shraga Brosh, and its director general, Avi Barak, and the chairman of the Histadrut's labor unions department, Avi Nissankorn.

While a separate agreement with the private sector does not solve the problem of the rest of Israel's outsourced workers, it contributes to Eini's image, and it increased his bargaining power during Tuesday's negotiating session with Steinitz.

In the session, during which no progress was made, Eini presented a general outline with two main thrusts. Outsourced workers, especially full-time cleaning workers, would be taken on as regular employees by the firms in which they work. The status of other outsourced workers would not change in relation to their employer but they would receive salaries equal to people employed directly by the company.

Eini said on Tuesday that an agreement in principle on this two-pronged proposal would prevent the strike.

Steinitz reportedly told Eini the state would not be able to directly hire outsourced workers in its ministries and agencies because of the high cost. But he reiterated his willingness to raise the salaries of these people and to improve their benefits, as well as increase the monitoring of employment agencies to ensure their workers' rights are not being infringed.

Speaking on Tuesday in Tel Aviv at a conference of the Association of Electronics and Software Industries, Steinitz called on Eini to work with him to resolve the issue, and in any case not to strike. "This is not the time to traffic in Israel's economy. The world is being shaken and we are in a battle over the economy," Steinitz said, adding that a strike was "playing with fire."

Steinitz said the treasury recognized the need to improve conditions for outsourced workers, mentioning security guards and cleaners in particular, and "ensure their rights as is the rule in welfare states like Sweden and Holland." However, Steinitz said, "it is inconceivable for us to be the only country in the OECD that would hire outsourced employees directly and require this of local councils and high-tech companies."

Steinitz said: "If we directly hire cleaners and security guards today, tomorrow they will directly hire caterers and afterward accountants and lawyers who provide services to companies."

Steinitz said it was ridiculous to tell high-tech firms that, unlike their branches abroad, in Israel they could not purchase the services of cleaners and security guards, but would have to hire them directly.

"In Sweden all these services are purchased, but fair wages and conditions are strictly monitored. Here we have to correct the situation so as to move forward and not back by decades," the finance minister said.



The following institutions will be closed as a result of the strike:

All government ministries

National Insurance Institute

Unemployment offices

Municipalities no office hours, parking tickets or garbage pick-up

Religious councils

Chief Rabbinate

Courts

Tax Authority

University administration workers

Trains

Ports

Naamat and WIZO day-care centers

Banks

Stock Exchange

Habima, Beit Lessin and the Cameri theaters

Municipal museums and the Diaspora Museum

Educational Television

Agricultural councils

Ben-Gurion International Airport will be on strike from 6 A.M. to noon. (Airlines have changed their schedules in and out of Israel to minimize inconvenience to travelers.)

Public hospitals and Magen David Adom will operate on Saturday schedules

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