Histadrut (General Federation of Labor in Israel) chairman Avi Nissenkorn has called upon the government to raise the minimum wage in the public sector as quickly as possible.
“I don’t understand how the State of Israel can not see to 700,000 workers for so many years. The Histadrut exists for this, regardless of elections,” Nissenkorn said today at the “Globes” Israel Business Conference.
“The negotiations were very long, also with the State,” continued Nissenkorn, “We threatened to strike because sometimes, unfortunately, we have no choice. We were in the final stages of the deal, with no connection to the elections. We were a moment before signing a deal with the Ministry of Finance. We agreed on NIS 5,000, because it is a correct principle, and it takes into consideration employers and a correct balance in the market,” said Nissenkorn of the agreement the Histadrut reached with private-sector employers, while talks with the State are stalled.
“We were moving towards finalizing a deal with the public sector, exactly the same deal,” said Nissenkorn. “I think the Ministry of Finance is making a mistake. Not looking at the gaps, the data; as though they are blind to them. It is the responsibility of this system to look at the weaker elements as well. The real problem is income, not just the high cost of living.”
“Globes” editor Hagai Golan asked Nissenkorn about wage disparity in the public sector, the most hotly contested matter in the talks between the Ministry of Finance and the Histadrut, and Nissenkorn answered: “These workers were excluded. A minimum wage agreement must take care of the workers who really earn less than NIS 5,000 a month. I let go of all the populist claims.”
What about enforcing minimum wage?
Nissenkorn: “I am familiar with the problem. Everyone knows you can’t live on NIS 4,300 a month. Today, it’s almost impossible to live on NIS 6,000. You can increase enforcement, and we will rally to do so. We must create a norm. There is something broken here. We have become a society with too much inequality.”
There are small and medium-sized businesses that say they won’t be able to sustain these wages, and that there will be layoffs because of this. What do you think?
“So, maybe we should make the minimum wage NIS 2,000, because there are layoffs also at NIS 4,300? There is no limit, we must decide on a minimum wage, and that is why it is gradual. I don’t think it’s a real threat - employers will be proud to pay their workers a respectable wage. Every business should look in the mirror. I have great respect for the employers, but I don’t respect those who are trying to prevent this. They are being untrue to their souls. There is no equal opportunity. They are creating a poor generation here, and it is always the same ones who are harmed - haredim, Arabs, and women.”
Published by Globes [online], Israel business news - www.globes-online.com - on December 8, 2014
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