Subscribe to Print Edition | Thu., April 02, 2009 Nisan 8, 5769 | | Israel Time: 02:11 (EST+7)   Back to Homepage web haaretz.com Haaretz Toolbar Diplomacy Defense Jewish World Opinion National Print Edition Car Rental Books Haaretz Magazine Business Real Estate Joy of Giving Travel Week's End Anglo File

The tycoons' companies don't create jobs By Tali Heruti-Sover Tags: israel news Would the fall of a big tycoon put thousands of workers on the dole? Would the fall of a "big borrower" destroy the chance of creating large numbers of new jobs? It turns out that eve in the event of a major holding company collapsing, mass layoffs are not particularly likely. A change of corporate ownership must have some repercussions, but a properly managed, financially stable firm should not be seriously harmed by such a change. The employees of a struggling company would have suffered anyway, sooner or later. Advertisement In many cases, the process actually creates jobs: A newly sold firm often starts a renewal process, seeks new and creative ideas - and recruits new employees. What surprises many is actually how little influence the major tycoons have over the job market. In reality the large conglomerates create few jobs, and even then only through subsidiaries. An ownership change would have little effect. The four largest employers in Israel are Teva Pharmaceutical Industries, with 28,000 workers; Bezeq, 18,000; Amdocs, 17,500; and Israel Aerospace Industries, 15,500; according to Dun and Bradstreet's 2008 report. Fifth comes Bank Hapoalim, with 14,400. Chairman Dan Dankner has said he will not fire anyone due to the economic crisis. It seems that the tycoons demanding billions in state money or guarantees may have created jobs in Romania, Russia, Africa or the U.S, but they haven't done as well in Israel. Supermarket chain Super-Sol had more than 10,300 workers in 2008, says D&B, but what would happen if IDB sold it? Nothing. The same goes for Cellcom and Delek, other viable subsidiaries of holding companies owned by the big tycoons. All these companies are economically viable on their own, and would continue to function even if their owners can't pay their debts - or have to sell. Financing issues do not really affect most of Israel's largest employers, only their owners. The sector that generates the most economically valuable jobs is one where the tycoons have almost no hold: high-tech. The high-tech sector has not gotten into trouble in the bond markets, and it does not need to be rescued. The total number of high-tech workers, including biotech and clean-tech, as well as pharmaceuticals, is no more than 150,000 - and this was before the latest waves of layoffs. Just for comparison, the Israel Electric Corporation employs about 12,000. But high-tech's value is not only in its jobs, but in its engine for economic growth and exports, which enrich the rest of the private sector. Some of the second- and third-tier businesses that depend on high-tech are suffering today, such as catering, leasing, cleaning and communications. These sectors are losing jobs due to the downturn in high-tech. Therefore, says Prof. Moshe Zviran of Tel Aviv University, if the state wants to save jobs, it should invest in high-tech. Bookmark to del.icio.us   Israel's new policy FM Lieberman: Israel not bound by Annapolis commitment for Palestinian state. Netanyahu's cabinet: An introduction to the faces - some old and some new - who make up Israel's new coalition.

Read & React Lieberman: Israel not bound by Annapolis Responses: 150 Editorial: Netanyahu government doomed to failure Responses: 71 '70% of Palestinian youth oppose violence in conflict with Israel' Responses: 52 Aluf Benn: Will Netanyahu strike Iran? Responses: 156 IDF raps soldiers for images of dead Palestinian babies on t-shirts Responses: 53 More Headlines 22:42 Obama tells Netanyahu: U.S. committed to Israel's security 22:40 Lieberman: Israel is changing its policies on peace 19:02 Obama and Medvedev: Iran has right to peaceful nuclear program 22:28 Hamas: Netanyahu government reflects racism of Israeli society 17:49 Aluf Benn / Will Netanyahu attack Iran? 14:06 Netanyahu government / Who's who in the new cabinet 11:13 WATCH: Daily news round-up from Israel 13:28 IN PICTURES / Netanyahu government is sworn in 00:23 Greece beats Israel 2-1 in World Cup soccer qualifier 16:15 Netanyahu: Let's roll up our sleeves and get to work 21:41 Israel seizes load of handguns and rifles en route to West Bank 21:31 Israeli Arab and rightist MKs wrangle at inaugural Knesset session 23:33 N.Y. to battle sexual abuse among ultra-Orthodox Jews Previous Editions Select Day 01 apr 31 mar 30 mar 29 mar 27 mar 26 mar 25 mar 24 mar 23 mar 22 mar 20 mar 19 mar

Special Offers Advertisement Spring Specials-Dan Hotels Jerusalem from 179$. Tel-Aviv from 223$. Herzliya from 336$ Dead Sea Skin Care Quality cosmetics from the Dead Sea. Coupon code HAARETZ for 12% off! Camp Kimama Israel 2009 The best place for your children this summer Eldan Rent a Car Israel's leading car rental company offers you a 20% discount on online reservations Jewish Singles Personal Ads Find the love of your life on JDate.com Junkyard Junk a car - get free towing nationwide and a tax-deductible receipt

Home | TV | Print Edition | Diplomacy | Opinion | Arts & Leisure | Sports | Jewish World | | Israel 2009 election results

Site rules | Makom: Engaging on Israel | Search engine marketing

Haaretz.com, the online edition of Haaretz Newspaper in Israel, offers real-time breaking news, opinions and analysis from Israel and the Middle East. Haaretz.com provides extensive and in-depth coverage of Israel, the Jewish World and the Middle East, including defense, diplomacy, the Arab-Israeli conflict, the peace process, Israeli politics, Jerusalem affairs, international relations, Iran, Iraq, Syria, Lebanon, the Palestinian Authority, the West Bank and the Gaza Strip, the Israeli business world and Jewish life in Israel and the Diaspora.

© Copyright  Haaretz. All rights reserved