"We were surprised that our consumers were very angry," said Ofra Strauss, Chairwoman of Strauss Group Ltd. (TASE:STRS), in response to the extensive cottage cheese rebellion. "We didn't know, we didn't understand, we were surprised" - this is the entire story, now go and learn. In Strauss' favor, it can be said that she dared to speak sincerely when the other companies hid behind their PR divisions and their managers (we finally understand why shareholders grant them such outrageously high salaries).
They didn't know and they were surprised because we didn't speak out. We didn't boycott. We didn't attack. We didn't punish. The public did not take advantage of the enormous power its pockets hold. The cottage cheese affair unfolded just like in mobile telephony, and with pension and savings administration fees, diapers, infant formula, and tax exploitation. But this time it was different.
Union members, like Israel Electric Corporation (IEC) (TASE: ELEC.B22) employees, airport and sea port workers, government employees, use their combined power to attain personal goals. In contrast, the general public is a mixture of individuals, without any connection to each other, and with no method to become a unified force. It may be that, this time, it was new technology that woke us up, that enabled a large portion of the public to protest with just one click. But this is not enough. The realization occurred only when the public's endurance weakened. The camel carried more and more until the cottage cheese broke its back.
They are no longer surprised. However, they still hope that as the holidays and winter approach, some security or economic crisis will occur that will make the protest vanish. That the public will return to being content with complaining to each other at Friday night dinner.
If this happens - we will have failed. All of us. The white cheese spread is small change. Another shekel more, a shekel less, is not dramatic. It's just a beginning. The big story is still ahead of us. For example, politicians' habit of imposing more and more indirect taxes, the various levies of the local authorities, taxes on assets, draconian administrative fees, capital markets that only benefit controlling shareholders, government bureaucracy that eats up NIS 100 billion a year just to maintain itself, not to mention all the "go, come, stand in line, send a letter, finance a middleman."…
And now comes the next stage, which is vital: more consumer groups, goal-oriented media, and more individuals who are willing to start public protests.
Competition? This is the Ministry of Finance's answer. A correct answer, we must admit. Competition is the basis for proper consumerism. But does anyone believe that we will really eat cottage cheese that was "made in England"? Will a foreign bank come here to manage shekel accounts for households? Will we use foreign insurance and mobile companies (maybe when we have peace and we will connect to Jordanian or Syrian networks)? Competition on its own will not bring salvation.
In the meantime, we need to watch out for those who are trying to jump on the bandwagon. First of all, the ministers and MKs - politicians who say one thing and do another. Suddenly Histadrut chairman Ofer Eini cares about the small consumer. The Histradrut was the one most involved in monopolies. It was built on monopolies like Tnuva Food Industries Ltd., and used all its' strength to annihilate any competition. It was dissolved of its assets only after it finished swallowing up all the money, and its mighty businesses declared bankruptcy.
However, the massive backing and support of the monopolies didn't end; they just took on a new form. The Histradrut was and remains the main supporter of all the big and wealthy worker committees - employees of the monopolies and the conglomerates.
Another organization that has taken advantage of monopolies is the Manufacturers Association of Israel, with Shraga Brosh at its head - all it wants is to be allowed to continue to function as it used to. In other words, with as little competition as possible, and as much protection of local products as possible, whether directly through taxes and excises, or indirectly through control over standards.
At the end of the day, only consistent and alert public power, made up of a huge number of individuals who do not know each other, can stand up to the power of the super rich.
Published by Globes [online], Israel business news - www.globes-online.com - on July 13, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011