Netanyahu, Peretz trade barbs over economic policies

Likud primaries front-runner MK Benjamin Netanyahu on Sunday blasted Labor Party Chairman Amir Peretz, saying he had launched hundreds of strikes during his years as head of the Histadrut labor federation for his own personal promotion.

"Amir Peretz carried out 606 strikes during the last decade for his personal promotion," Netanyahu said in his speech at the Israel Business Conference. "Israel used to be the world champion of strikes thanks to the world champion of strikes, who will be talking next."

Netanyahu also protested that every contester in the next general elections "is competing against another over who is more oriented toward social issues, and explaining how he will divide the budget while criticizing the policies that filled it."

Peretz: Netanyahu's magic endedEarlier in the day, Amir Peretz told participants at the Israel Business Conference that "we all thought Netanyahu was a magician, but one day the magic ended."

"Today the norm for good management is an administrator who knows how to dismiss people. Every time there is a crisis, an administrator who knows how to cut costs, by dismissing employees, is sought," Peretz said.

"I don't believe that the social gaps are a question of compassion and humanism, but rather one of economics. The gaps endanger our society. We saw what happened in New Orleans. The anti-social legislation of recent years is a homemade hurricane. I know that competition and a free market are the spice of any economy's life, but there is no reason why social gaps should expand at an alarming rate when the economy is growing.

"I view the business community as a main partner. I am of the opinion that we should establish a national socio-economic council comprised of employers, employees, government representatives and delegates from social organizations."

In discussing the minimum wage, Peretz cited Ireland, where he claims employers raised the minimum wage. "If we don't do that, we may wake up one day as a backward country."

Peretz announces resignation from Histadrut leadershipEarlier Sunday, Peretz announced his resignation from the leadership of the Histadrut labor federation, a position he has filled for the past 10 years.

Peretz also said he supports Ofer Eini, the head of the Histadrut trade union department, as the candidate to head the organization.

Peretz refused to answer any political questions during his announcement. "Unlike the prime minister, who uses government ministries for his election campaign, I do not intend to use the Histadrut as a location for answering political questions," Peretz said in a press conference convened at the Histadrut offices in Tel Aviv.

Peretz's resignation from the Histadrut follows the passage of a law in July barring Knesset members from also serving in the Histadrut's top post. The law goes into effect at the beginning of the next Knesset term, which is set to begin after general elections scheduled for March 28, 2006.

Histadrut insiders are speculating that Eini has the best chance of becoming chairman. As head of the trade union department, Eini holds the labor federation's second-most powerful position, and he had also served as head of the income tax workers' committee.

In his announcement, Peretz said that the transfer of power to the new elected Histadrut chairman would be completed by January 2, 2006 and that on December 18 he will convene Histadrut leadership to approve the organizations budget for 2006.

	Labor leader Amir Peretz visiting a shopping mall in Tel Aviv on Friday. (Nir Keidar)