Israel Railways CEO Yitzhak Harel has told the company employees that privatization is a fait accompli. He told employees at a meeting earlier this week they could submit comments and amendments to the privatization plan, but management has sole discretion on the matter, and it is not up for negotiations.
Harel also told the workers that he was not ready to discuss safety issues before July 1, the deadline for the labor court-ordered negotiations on train safety. Israel Railways management told "Globes" that the safety plan is not yet ready, because it cannot be completed in only a few weeks.
A month ago, Minister of Transport Israel Katz said that he had no interest in the privatization of Israel Railways, and that his immediate priority was passenger safety. Both his aides and Israel Railways managers said that the workers committee opposed installing GPS systems in train drivers' cabins and the implementation of stricter oversight procedures.
Harel's statement reinforced prior claims by the Israel Railways workers committee that they were never shown a safety plan and that management's remarks in the media were aimed to delegitimize the workers committee. Management's decision not to discuss safety issues also appears to violate the court order to hold intensive negotiations on train safety issues in dispute, a labor contract, and the privatization of rolling stock maintenance.
The negotiations broke down when the Ministry of Transport and Ministry of Finance budget department told the Israel Railways workers committee that the privatization of rolling stock maintenance was not open to negotiations, but only the effect of the decision on the employees.
In other words, the Israel Railways workers committee and the Histadrut (General Federation of Labor in Israel) could only discuss compensation and job security after the privatization. As far as the ministries are concerned, privatization is a fait accompli.
Transportation Workers Union chairman Avi Edery said that the issue would therefore go to Histadrut chairman Ofer Eini. The hardening of ministries' position strengthens the prognosis of more labor confrontations ahead.
Published by Globes [online], Israel business news - www.globes-online.com - on May 26, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011