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Cleaning, security workers left without social benefits, severance
By Ruth Sinai
Tags: Finance Ministry, workers 

Mishmar, the cleaning and security services supplier, which fired 800 workers and shut down on Wednesday, is the latest in a long list of similar companies to close down in recent years. Some fired workers were transferred to other companies, without receiving their due wages or social benefits. This is one example of the dubious employment practices of dozens, perhaps hundreds of companies.

In July, Mishmar fired 800 workers without paying them severance, when it lost a tender to supply cleaning services to Soroka Medical Center in Be'er Sheva after a more than 20-year partnership.

Mishmar had failed to budget the severance fees in its tender proposal, as required by law. In an effort to pressure the company to pay severance, Soroka withheld NIS 1 million it owed Mishmar. This forced the company to shut down.
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Mishmar supplies workers to several hospitals, including Carmel Medical Center in Haifa, Loewenstein Hospital Rehabilitation Center in Ra'anana and Shalvata Mental Health Center in Hod Hasharon.

Becky Arusi is one of the hundreds of workers left unemployed after working in Petah Tikva's Beilinson Hospital for 10 years. She started as a cleaner and advanced to preparing meals in the hospital's kitchen. Despite her seniority, she earned minimum wage and was paid NIS 20.70 by the hour.

Arusi, a single mother from Petah Tikva, first knew that Mishmar was in trouble when she was not paid on November 10. Two days ago, she heard on television that the company had closed down. By Thursday, she and her 54 colleagues had still not received a dismissal notice.

The hospital transferred her to another personnel company, but she does not know whether she will get paid for the last month and 10 days or will receive social benefits and severance for 10 years' work. On Sunday, she and other workers will meet with a lawyer appointed by the Histadrut.

Arusi and other workers in similar personnel companies were re-hired by so-called "new" companies, sometimes opened by the same owners under a different name. Around 1,000 companies employ 45,000 cleaning workers. Most companies survive on tenders they win by quoting very low prices. Operating at a loss, they are forced to close down soon after.

Mishmar owner Yossi Liav complained that the hospitals and ministries create such intense competition that contractors are forced to quote below-cost prices.

A Finance Ministry analyst said last year: "We have often found that the offers that win tenders issued by cabinet ministries are based on operating at a loss and do not enable the [tender] winner to keep his obligations."
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  1.   Tenders for menial work are often criminaly harsh. 12:06  |  S 14/11/08
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  6.   Cleaning,security workers left without social benefits 10:52  |  Marlene 16/11/08
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