Threat of general strike averted, for now

Finance Minister Yair Lapid and Histadrut labor federation Chairman Ofer Eini met on Monday evening in an attempt to avoid a general strike that would shut down the Israeli economy. The meeting was described as "good" and sources in the Finance Ministry said that "progress was made."

The Histadrut threatened to launch a general strike unless the Finance Ministry agreed to amend the budget bill, which outlined a series of extensive cuts in the public sector. Following the meeting, Eini decided not to announce a labor dispute, a move which would enable him to declare a strike within two weeks. The labor federation said the meeting "ended on a positive note. The Histadrut's leadership will meet later and at this point, the possibility of declaring a labor dispute has been shelved."

The threat of a general strike was prompted by the Histadrut's opposition to a Port Authority reform proposed by Transportation Minister Yisrael Katz, coupled with an amendment to the Arrangements Bill, introduced by the Finance Ministry, which suggests the construction of a private commercial port to rival the two existing ports in Haifa and Ashdod.

The labor federation was also vexed by new legislation proposed by the Finance Ministry meant to effectively bar institutions providing essential services from calling or joining a general strike, limiting their rights to strike to cases involving wage disputes only, and imposing mandatory arbitration proceedings for any labor or wage dispute.

Essential service institutions include Ben-Gurion International Airport, the Mekorot national water company, the Israel Electric Corporation and the Israel Ports Company.

A source close to Lapid said that the finance minister "won't let anyone drag him into a war."

Sources in the Finance Ministry denied reports suggesting the proposed strike prevention bill included a scheme to significantly reduce -- and maybe even revoke -- the labor courts' authority.

Lapid spoke Monday with Supreme Court President Justice Asher Grunis and assured him that his ministry had no intention on infringing on the labor courts' authority.

Should the Histadrut decide to declare a general strike, it may also include several new institutions, such as some of the cellular-service providers in Israel, which have recently joined the labor federation.

Calling a labor dispute does not, however, mean that a general strike is inevitable, as the Histadrut sometimes uses it as a way to expedite negotiations and dominate the process.

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