A few days ago we were informed on one of the news sites that Histadrut Chairman Arnon Bar-David conveyed a message to Netanyahu through Likud senior officials: "Smotrich's appointment as Minister of Finance - a red sheet." According to the report, Bar-David warned against the appointment of the Chairman of Religious Zionism as Minister The treasury in the next government.
"We will not hesitate and will stand with all the tools at our disposal against those who come to harm the workers."
The chairman of the Histadrut has good reason to fear the appointment of a finance minister who understands the importance of comprehensive labor relations reforms in the public sector and is willing to invest effort and political capital in order to bring about the implementation of these reforms.
From studies and data from around the world, a situation is obtained according to which labor laws in Israel, and in particular laws concerning the organization of workers in the public sector, do not serve national goals such as welfare, growth, equal opportunities and productivity and high wages, which are achieved first and foremost through a dynamic and innovative labor market.
The elected chairman of the Histadrut, Arnon Bar David, photo: Yossi Zeliger
In the public sector, unlike the business sector, there is no requirement or reference to profitability or to dealing with international competition.
The salary in the public sector is affected by the ability of each workers' committee to cause damage to the state, and not by its contribution to the economy and public welfare.
The public pays for it
A system of labor relations that sanctifies lack of competition, job security of the workers and excess rights over their counterparts in the private sector, can exist for many years.
The general public continues to pay dearly for this, out of lack of choice or lack of awareness.
Within the current labor relations system, even in cases where the committees agree to increase employment flexibility and lay off unnecessary workers, the price required from the government to obtain this agreement is very high.
It is embodied not only in very generous compensation for the fired (above and beyond what is acceptable in the private sector) but also in the payment of "consent fees" to the remaining employees, in exchange for their agreement to efficiency.
These costs, which are imposed by the Histadrut and the committees, may add up to such a high amount that in the end the government prefers not to make the necessary changes and preserve the inefficiency.
Ministry of Finance, photo: Oren Nachshon
Of course, a serious and comprehensive reform is required that will promote efficiency, employment flexibility, differential compensation and promotion of excellence, while avoiding unnecessary and wasteful employment costs.
The implementation of such a reform will enable a significant improvement of the service provided to citizens, the release of tens of thousands of employees who do not contribute to the nation in their current position and will be able to contribute much more in other positions in the private sector, and more.
to act decisively
But in order to promote such a reform, a strong and energetic Minister of Finance, politically independent, who will act resolutely to advance the reform and not be afraid of the threats of the Histadrut and the powerful committees who wish to preserve the status quo, acting in the interest of their political and economic power, is needed.
The chairman of the Histadrut knows very well that a weak finance minister, who attaches too much importance to the short term and his political survival, and who depends on the support of the committees in the primaries at the center of the party, may be tempted to reach agreements (overt or not overt) on the advancement of the interests of the Histadrut leadership and the powerful committees that control it, and -Taking "brave" initiatives to change the existing situation, in exchange for the committees avoiding strikes and disruptions and guaranteeing political support.
For the sake of the general public in Israel, it is to be hoped that the chairman of the Histadrut will not be awarded a weak finance minister as he wishes.
The writer is the head of the Ecclesiastical Forum for Economics
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