In an unprecedented step in Israeli labor relations, the government may issue emergency back-to-work orders to striking port workers and customs agents at Ben-Gurion International Airport, if the present deadlock in negotiations between labor union representatives and government officials persists.
The decision, taken by Prime Minister Ariel Sharon, Finance Minister Benjamin Netanyahu, and Transport Minister Avigdor Leiberman at a meeting at Sharon's ranch on Sunday, was to go into effect if representatives of the Histadrut labor federation refused to return to the negotiating table later on Sunday before the beginning of Yom Kippur, or at the conclusion of the holiday. There was no negotiation last night.
On Friday afternoon, a meeting between Finance Minister Benjamin Netanyahu, minister in the Treasury Meir Sheetrit, Transport Minister Avigdor Lieberman, Histadrut labor federation chair Amir Peretz, Histadrut trade unions division chief Shlomo Shani, and Histadrut ports division head Haim Shai, ended with no results. At the meeting on Sunday, Prime Minister Sharon gave his unqualified backing to Netanyahu's plans for restructuring the ports by creating a government corporation to operate each of Israel's three ports, at Ashdod, Haifa, and Eilat, after it was made clear to him that workers would not be laid off or their pay affected.
On Saturday night Lieberman sent Peretz a letter suggesting the sides continue to meet. "I propose we continue talking about progress in structural change at our ports in cooperation with the workers. These talks should be held in an intensive manner through October 25. If there are consecutive and serious, the cabinet will not advance any legislation and the workers will return to routine and complete schedules."
At the meeting on Sunday, Sharon, Lieberman, and Netanyahu expressed surprise that Histadrut and port union officials did not accept the offer.
In spite of the strike, port workers are permitting the entrance and departure of passenger ships, the loading and unloading of military equipment, fresh fruit, and chemicals.
The Manufacturers Association on Saturday said the strike has so far caused NIS 1 billion in direct damage to the business sector. It said a further NIS 1.4 billion in productivity would be lost because 30 cargo ships will be redirected to other ports and raw materials will not be loaded for shipping to Israel in the countries of origin.
The association said the value of export-designated goods delayed at ports and factories is NIS 4.3 billion, as its president Oded Tyrah called on port staff to end the strike after the terror attack Saturday in Haifa - "another serious blow to the economy."
At Friday's meeting Netanyahu said: "The basis for talks must be to convert the ports from a monopoly to competition. There will be no concessions on that. The government will insist on the principle of competition and streamlining for the benefit of all Israel's citizens, to reduce the price of goods and allow exporters to compete in a global marketplace."
Netanyahu said he plans to fulfill his campaign promise to streamline the ports and the economy, break monopolies and encourage competition. He will not, he said, cave in to a handful of self-interested unions. Peretz said he would not unilaterally waive labor agreements the state signed with the Histadrut two years ago. The labor organization said it is willing to enter negotiations with no prior conditions, based on the signed agreements and decisions of 2001. Changes are conceivable only as a result of negotiations.
Before the meeting, Peretz made an unprecedented attack on Netanyahu. "I am walking into a finance minister who feels like God on eve of Yom Kippur, a finance minister who has created a culture of incitement and lies. The economy will pay a high price for his being drunk on power." Peretz continued: "Netanyahu has created a culture of of breaking agreements and succeeded in inciting the public against career army officers, state employees, teachers and soldiers. Now he is inciting against organized labor and plans to make the entire country into one huge temp agency. He is trying to transfer all the state's assets to private hands."
Treasury legal counsel Yemima Mazoz said: "There are no grounds for the port unions' claim that the state is violating prior agreements, simply because there were no such agreements. This is a cabinet decision the workers have refused to accept for two years."
