In the video: Roy Cohen, president of Lahav - the Chamber of Self-Employed in Israel, in an interview for the show Walla We Solved with Advice for the Self-Employed in a War Crisis/Still Photo: Reuven Castro, Reuters and Flash 90
"Israel failed in its treatment of the economic consequences of the October 7th massacre events, no lessons were learned from the Corona period."
This is what Attorney Roi Cohen, president of Lahav - the Chamber of Independent Organizations and Businesses in Israel warns. According to him, "once again Israel woke up to a reality where it was not possible to operate businesses and maintain a functioning economy, and once again there was no prepared procedure or response to the issues that arise the next day."
Cohen, who is expected to speak at the economic conference of "Maariv" and "Walla" on March 26, represents through Lahav 67 economic organizations with over 250 thousand self-employed and business owners. He refers to the uncertainty in the months that have passed since the outbreak of the war that caused the evacuation of large areas of Israel. Do employees have to come to work even if the place is at a high risk level?", he wonders, "Who pays the employees and who rewards the employer?
Businesses have dropped from 100% revenue to 10%, but expenses continue as usual.
There was no reference to issues such as property tax, rent or loans.
All the failures that arose during the Corona period surfaced, only then they could say that it was a global epidemic that came as a surprise and they couldn't prepare - and now they can't.
"This is a reality that we live with instead of the state, a reality of war, a reality of terrorism," he emphasizes, "I was aware of these issues already in previous military operations, I asked that they enact a push-button procedure that would allow treatment in times of crisis. To allow treatment for people who find themselves in times of war Without being able to earn a living. It now took a month and a half, over 60 hours of discussions that I was a part of, to get the state to come to its senses and issue a compensation outline, which to this day there are people who still fall through the cracks.
"Until we got to the outline, people didn't know what to do.
There were heartbreaking cases where workers were put on unemployment benefits, or fired because they couldn't pay. There were people who couldn't meet their loans to suppliers, most business owners lived in the reality that one big one had disappeared, without a compensation plan. The problem is that even today, after with God's help we will win the war , we are still not prepared for the next event, there is still no mechanism in place in case of war in the north or even in the fence line area in Sharon."
Cohen has spent the last few months in the Knesset corridors in committees, visiting the state comptroller, the governor of the Bank of Israel and the offices of senior ministers such as the ministers of economy and finance, warning of the economic earthquake that is on the way.
"There is no answer for those people," he emphasizes, "there is a difference between the worlds of the self-employed and the salaried, the former does not receive the safety net that the salaried have. Now he enters a chaotic reality where he has no income, he only has expenses. This matter needs to be resolved through a legal response, There should actually be a permanent compensation mechanism that gives people financial certainty."
Cohen in the committee.
"The Treasury sees us as an expense and not an investment, as far as they are concerned, business comes and business goes"/Noam Moshkovich Knesset spokeswoman
"slow journey"
When asked why in his opinion politicians, including those who promised a significant "change" in the issue, did not advance the issue, he explains that it is a matter of power.
"We don't have a hand on the counter," says Cohen, "the independent public cannot go on strike or close their businesses in one way or another. We don't have the power of the Histadrut or other bodies. We do influence because we interfere where necessary, warn and try to correct, But it's a slow process because the political world looks at the self-employed public as a non-homogeneous body, and that's how we live from title to title but without performance.
"Since 1996, over 40 bills have been submitted on the topic of unemployment benefits for the self-employed," emphasizes Attorney Cohen, "but we We still live in the reality that this thing does not exist. If, god forbid, a self-employed person gets a stroke or has a heart attack, there is no answer, and that is because there is no hand on the counter. I still believe that it is possible and necessary to change from within, and I do my part as a full volunteer to change. But In the end, if you're not at the decision-making table and you don't need your finger for a fateful vote in the Knesset, you find yourself on a slow journey
.
But not yet the big cross-cutting issues, such as unemployment benefits for the self-employed, social safety net, recognition of work car expenses and the like.
"During the Corona period, about 70,000 businesses paid the price of the Israeli government's failed conduct," he recalled, "it took four months for the Knesset to get it out of the way, until the state realized that it had to take responsibility and put its hand in its pocket and help these people survive the period. This investment paid off because what drove the economy back was the self-employed public and business owners. Unfortunately, the treasury officials see us as an expense, not an investment. For them, business comes and goes, if you chose to be self-employed you have no protection. This is the mindset in the budget department of the Ministry of Finance, that they are not They are supposed to give an answer. Those who are strong will survive and those who are weak will fall."
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Attorney Cohen says that the Israeli government ran away from responsibility twice, during the corona virus and after the terrorist attack of October 7, and that even today the treatment is not complete. "There are industries that have not returned to work.
Like the tourism industry, culture, productions, I don't see international conferences, guides can't work, there are no tourists or productions.
The answer those people get is that there is no answer, find another profession or learn to live in this reality.
I do not agree with this approach.
I come to the debates in the Knesset to fight for those industries that have not returned to work and currently owe the help.
"I have not seen a civil servant give up a single shekel since October 7th for the war effort, on the other hand, self-employed people are required to give up 60-80% of their income. Where is the income under the stretcher of the public sector, too many Norwegian MKs, government offices Unnecessary and coalition agreements, but the independents have no answer left.
"This attitude that sees us as only an expense and not an investment needs to pass from the world. In all developed countries at a moment of crisis money is poured into the business sector, they are told to take it and at the end of the year we will reckon with you, we will see how you survived.
"Even for a committee of exceptions we have to fight.
People fall through the cracks, including reserve men and women who are also owners of small businesses or self-employed.
The state tells them we will actually reimburse you for losses, so my interest as a business is to lose money, that's the only way I'll get it back.
I have no interest as a business in trying to succeed because of the layout of the country.
"We demanded that it not only be an outline of losses but an outline of future loss of profit. Employees who receive an arranged salary on the first of the month do not understand the world of the self-employed. As soon as a self-employed person returns to work, he needs a few months to restart the business and he needs support. I insisted on this There should be an exception committee for self-employed reservists who fall through the cracks. It is our duty as a society to give them everything possible, so that they have the feeling that there is someone who sees them, who understands the reality they have fallen into.
Closed store in Kiryat Shmona.
"Employees who receive an arranged salary on the first of the month do not understand the world of the self-employed"/Reuven Castro
"Opportunity for Change"
Cohen explains that the State of Israel is currently de facto divided into two nations, a nation of employees and a nation of self-employed people, and although they bear the same burden of paying taxes and social security, each has different rights.
"In the past decades, the organized workforce has been able to bring about achievements for its public," he says, "we, the self-employed organizations, have each time managed to get a foot in the door. Sometimes a training fund, sometimes canceling the calculation of a consolidated tax, or a mandatory pension for the self-employed. But again, the network We were unable to bring security because of the mental fixation in the Ministry of Finance and the budget department in particular, according to which a self-employed person assumes all risks from the moment he decides to be self-employed, and for them, risk is also a situation in which he will not be able to make a living due to something unrelated to him and not his responsibility.
"I believe that the events of
October 7 created an opportunity for change, an opportunity for people who could change reality to enter the public and political space, to influence and change this reality.
It can't go on any longer, everything has to be with a long-term vision, professional root canal treatment.
I will do everything to bring as many people as possible into the circle of influence so that they push those decision makers to change the state's attitude towards the independent public and business owners.
I am optimistic, I believe that the Israeli society has proven its greatness and showed us what mutual guarantee is.
We will come out of this strengthened, forged and will lead to a better future for our children."
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Roy Cohen
small businesses
self-employed
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Gaza war
Compensation