Israels labor federation on Wednesday launched a nationwide strike for the first time in five years that has shut down national and local government offices, municipalities, the National Insurance Institute, banks, the stock exchange, the Postal Authority and the ports. Ben-Gurion International Airport was ordered by a labor court to resume operating at noon. Union leaders are protesting the widespread use of contract workers who earn less and often do not have the benefits of regular employees. Last-ditch talks overnight between the Finance Ministry and the Histadrut Labor Federation did not produce a breakthrough, and the strike went into effect at 6 a.m. The Finance Ministry accused the Labor Federation of being inflexible and dragging the economy into an unnecessary strike. The Israeli Chamber of Commerce estimates the strike will cost the economy $100 million a day. Histadrut and Finance Ministry officials were scheduled to reconvene negotiations at 2 p.m. Wednesday, to try to bring an end to the country-wide strike. Bus lines are operating as usual but trains have been shut down. Daycare centers operated by the WIZO, Naamat and Emunah organizations were shuttered as well. The High Court of Justice on Tuesday rejected a petition by the Israeli Chamber of Commerce to block the strike due to the high toll it will exact on the economy. A strike will not solve the problems of contract workers, Prime Minister Benjamin Netanyahu said in a statement issued Tuesday. Their work conditions can be improved without disrupting citizens lives. There is no magic solution to the employment problems that have been created here over decades; it is possible to resolve the issue through dialogue. Although the negotiations with the Finance Ministry hit a wall, Eini did achieve a breakthrough with representatives of the Israel Manufacturers Association that would enable many contract workers to be employed directly rather than through manpower firms. However, Eini wishes to force all employers to comply with such arrangements, something Finance Minister Yuval Steinitz (Likud) is loathe to do in the interest of preserving employment flexibility.
