US embassy cable - 05TELAVIV6405

UNCLAS SECTION 01 OF 02 TEL AVIV 006405 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR NEA/IPA 
 
E.O. 12958: N/A 
TAGS: ELAB, PGOV, IS, ECONOMY AND FINANCE, GOI INTERNAL, ISRAELI SOCIETY 
SUBJECT: LABOR UNIONS LOSE POWER AND INFLUENCE, RELY ON THE 
SUCCESS OF AMIR PERETZ 
 
REF: TEL AVIV 6353 
 
1.  (SBU) SUMMARY: Histadrut labor federation leaders told 
poloff October 31 that the movement has lost power to 
influence legislation since Histadrut's 1994 divorce from the 
Labor Party, which formerly served as its surrogate in the 
Knesset.  To reverse the organization's declining impact on 
public policy, Histadrut leaders, both young and old, 
described a strategy of relying upon the personal political 
power of Histadrut Chairman Amir Peretz, and launching a 
campaign to recruit more union members.  To appeal to new 
members, Histadrut leaders have stopped marketing Histadrut 
membership as a means to express ideological commitment to 
workers' rights and now focus their pitch on the benefits to 
members of insurance coverage that comes with Histadrut 
membership.  Histadrut leaders thus no longer talk about the 
power of their strikes or political ideas; they talk about 
the power of Peretz.  They no longer sell an idea about the 
state's obligation to its citizens; they sell insurance.  END 
SUMMARY. 
 
--------------------------------------------- ----------- 
STRATEGY TO CHANGE GOI POLICY: "PERETZ MUST BE IN POWER" 
--------------------------------------------- ----------- 
 
2.  (SBU) Nawaf Massalha, elected member of the Histadrut 
National Committee, told poloff that he currently leads the 
grassroots campaign to elect Amir Peretz chairman of the 
Labor Party.  He said that he and other officials at 
Histadrut have worked hard to ensure that Labor Party members 
make it to the polls during the Labor primaries scheduled for 
November 9 (reftel).  Nawaf estimated that 100,000 Labor 
Party members are eligible to vote in the primaries, and that 
at least 40,000 of them are members of Histadrut.  He 
acknowledged that since many of these members joined 
Histadrut as part of collective bargaining agreements at 
their workplaces, their union membership does not necessarily 
reflect a preference for Amir Peretz, or even an affinity for 
Histadrut or its political platform.  Nawaf claimed, however, 
that he and his staff have significantly increased support 
for Peretz among Histadrut members through door-to-door 
campaigning, in part by drawing on Nawaf's long experience as 
a Histadrut organizer and member of the Knesset, where he 
served between 1987 and 2003, and as deputy foreign minister 
under Prime Minister Ehud Barak. 
 
3.  (SBU) The Labor Party primaries, Nawaf said, are 
critically important for Histadrut because, he stressed, 
"Peretz must be in power to fulfill Histadrut's economic 
agenda."  Nawaf repeatedly tied Peretz's political ascendancy 
to the fulfillment of the "workers' agenda."  Histadrut, he 
said, has no alternative strategy to influence legislative or 
policy outcomes.  He explained that Histadrut was part of the 
Labor Party until 1994, and relied on the party to press the 
federation's legislative agenda.  Accordingly, the federation 
has no history of or experience in public campaigning through 
the media, policy development through think tanks, or 
lobbying at the Knesset.  Histadrut leaders thus now depend 
primarily upon Peretz to realize their progressive economic 
plan, which seeks, among other policy changes, to raise the 
minimum wage to USD 1,000 from USD 700 per month; to lift 
pensions above their current rate of 14% of the average 
salary; and to increase the approximately USD 100 million set 
aside in the current budget to fight poverty.  Nawaf said 
that Histadrut leaders also prefer a policy that aggressively 
pursues a negotiated peace with the Palestinians.  Peretz, 
whom he termed "one of the doves of Israel," will use his 
position as Labor Party leader to advance this strategic goal. 
 
--------------------------------------------- ---- 
RECRUITING NEW MEMBERS: "IT'S NOT ABOUT IDEOLOGY" 
--------------------------------------------- ---- 
 
4.  (SBU) Since 1998, Histadrut's membership has fallen, from 
approximately 1,480,000 to approximately 650,000 members, or 
from 80% to 35% of working adults in Israel, according to 
Histadrut Director of International Activity Avital Shapira. 
To recapture lost members, Histadrut leaders have launched a 
campaign led by Arik Attias, director of the organizing and 
collecting division of Histadrut.  Attias told poloff that he 
drafted, and Peretz approved, a "business plan" for the 
Histadrut that aims to return membership to one million.  The 
plan does not touch upon the organization's progressive 
policy agenda, he said, because "It's not about ideology. 
It's about marketing mainly, marketing our product, which is 
insurance."  All members receive this insurance, Attias said, 
which covers legal fees in the event that a member must hire 
a lawyer to confront managers in a dispute over wages or 
dismissal.  It also includes free legal advice and related 
services.  Attias gave an example of how he instructs his 
staff of eight recruiters to explain Histadrut to prospective 
members.  "We tell the story of a flood or fire in an 
apartment, where someone wakes up and says, 'Why didn't I get 
insurance?'  They understand this example.  For this 
insurance they have to pay, though, like health or car 
insurance."  To become a member and receive this insurance, 
he said, workers must pay 0.95% of their monthly salary to 
the Histadrut. 
 
********************************************* ******************** 
Visit Embassy Tel Aviv's Classified Website: 
http://www.state.sgov.gov/p/nea/telaviv 
 
You can also access this site through the State Department's 
Classified SIPRNET website. 
********************************************* ******************** 
JONES