Israeli government tackles unions

BBC. UK, 24 November, 2003.

Israeli Finance Minister Benjamin Netanyahu is preparing anti-strike laws in an escalating confrontation with unions over economic reforms.

The proposals would force unions to give 60 days notice before staging a walkout, while public sector workers would need a secret ballot to strike.

Mr Netanyahu's action follows a spate of industrial action in protest against the planned 2004 budget.

Unions fear government privatisation plans will trigger mass redundancies.

Austerity

The finance ministry's 2004 budget, which has to be approved by parliament by the end of the year, calls for about 10bn shekels ($2.2bn) in spending cuts.

Mr Netanyahu also plans to raise revenue and reduce a looming deficit with an ambitious programme of state asset sales.

But the programme has brought conflict with labour unions and public sector workers, likely to be exacerbated by the latest move against union rights.

Earlier this month a court ruling thwarted plans for an open-ended general strike, limiting the action to four hours.

The ruling followed weeks of disruptions - official and unofficial - across the public sector.

The news of Mr Netanyahu's plans comes on the day that baggage handlers at Tel Aviv's international airport resumed work after a one-day wildcat strike.

Divided

Mr Netanyahu insists its reforms are necessary to tackle the country's ongoing economic crisis and bring public finances into order.

But Histadrut, the umbrella union movement, accuses the government of reneging on commitments made during negotiations and waging a political campaign against the labour movement.

Mr Netanyahu's reforms have also divided the Israeli ruling coalition and the government. The cabinet voted 14-9 in favour of the budget.

The finance ministry is forecasting a budget deficit of 5.5% of gross domestic product this year, with spending cuts offset by defence costs associated with the ongoing conflict with the Palestinians.

A $9bn US loan guarantee package is conditional on the government pushing through measures to reduce the deficit.