Fierce differences of opinion erupted at the very first meeting of the "Round Table" forum. The participants included Minister of Finance Yuval Steinitz, Histadrut (General Federation of Labor in Israel) chairman Ofer Eini, and employers' representatives Shraga Brosh and Yehuda Talmon. At the end of the meeting, the three sides issued a joint "softened-up" statement about setting up a number of teams that within two to three weeks will formulate a detailed economic plan to deal with renewing growth and preventing further unemployment.
However, sources inform "Globes" that inside the room the employers' had some harsh words for the Ministry of Finance. "Apart from Balfour-like declarations, there has been no progress whatsoever on the economic plan," one of the participants at the meeting told "Globes" today. "Steinitz spoke in lofty terms about the need for cooperation, but there was no content to it. In my estimation, before there's a single cooperative effort, it will all fall apart."
The problems at the discussion started when the participants understood that the main measures of the economic plan were not being presented, and that instead the Ministry of Finance officials were asking Eini and Brosh to present the measures they wanted. "You are the government, you have to decide," Eini and Brosh told the officials. "We'll give our opinion on your proposals, not the other way round," they explained.
Another matter that troubled Eini and Brosh was the question of who their opposite numbers were to be on the government side. Eini hinted that unless he saw genuine cooperation between the parties, he would have to go directly to Prime Minister Benjamin Netanyahu.
Eini also expressed dissatisfaction over the Economic Arrangements Bill that accompanies the budget, saying that he was not prepared for the bill to be presented to the public until it had been reviewed by the workers and employers. "I embraced you in front of the journalists, but I hope we will be able to embrace after this whole process is over," Eini told Steinitz. Eini also warned the minister of finance and his officials that he was opposed to proposals for freezing public sector wages.
Another matter that the Histadrut chairman raised was taxation of advanced training funds, which amount to a tax-free savings program. Eini stated unequivocally that there was no question of taxing these products, neither profits nor deposits. He said this benefit was a salary benefit that the workers received in lieu of a salary rise.
The planned reform at the Israel Electric Corporation also exercised Eini. "You must decide whether you want reform of a streamlining program. You won’t get both," he declared, thus making clear that he backed the sanctions being imposed by Israel Electric Corporation workers opposed to streamlining.
None of the participants in today's meeting was enthusiastic about it. Ministry of Finance sources described the content of the meeting as "necessary diplomacy". Setting up the "Round Table" was one of the Labor Party's demands for joining the coalition, and the opposition of senior Ministry of Finance officials to the very idea of the joint forum is plain to see.
Published by Globes [online], Israel business news - www.globes.co.il - on April 22, 2009
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