PM seeks 5,000 more Palestinian work permits, despite economic advice
Economic advisers oppose move due to fear of driving down Israelis' wages, increasing unemployment.
By Ruth Sinai and Haaretz Correspondent Tags: Ehud Olmert Israel unemployment PalestiniansThe cabinet will be asked Sunday to approve the employment of an additional 5,000 Palestinian construction workers, against the recommendation of the Bank of Israel and some government officials.
Prime Minister Ehud Olmert and Defense Minister Ehud Barak proposed the move after U.S. Secretary of State Condoleezza Rice and Quartet envoy Tony Blair pressured them to make some concessions to the Palestinian Authority.
The proposal, which increases the current quota by 30 percent, explains that it is based on the demand for workers and is expected to expand construction activity.
However, officials in the finance, industry, trade and employment ministries said there was no shortage of construction workers, as 15,000 Israelis have entered the profession this year after the number of permits for foreign workers was cut.
They said that increasing the number of Palestinian workers would damage the construction workers' wages, which rose as foreign workers were replaced by Israelis.
A Palestinian worker earns about NIS 12 an hour, while Israeli workers earn NIS 40 to NIS 45. Some 14,000 Palestinians currently are employed legally in Israel, more than twice the number of foreign workers from other countries.
A report released last week by the Eckstein Committee - a panel for shaping the country's policy on non-Israeli workers, headed by the Bank of Israel's deputy governor, Prof. Zvi Eckstein - recommends not employing non-Israelis in farming and construction as a means of creating jobs for uneducated, unemployed Israelis. The report says this would raise the wages in these fields and reduce poverty.
The report also recommends employing Palestinians only within agreements that take into account the negative effects on Israelis' employment and wages.
The report recommends obliging employers to deposit Palestinian workers' wages directly into their bank accounts, and raising the cost of employing them in construction by at least 120 percent and in farming by at least 40 percent.
Industry, Trade and Employment Minister Eli Yishai, who is believed to oppose the proposal, was unavailable for comment on Saturday.
Why Facebook Connect?
Comment on Haaretz.com articles with your Facebook login, and share your thoughts on your own wall.
