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TUFI May 2006 Update: New Israeli Government but Palestinian funding crisis continues.

New Israeli Government formed

Following weeks of weeks of negotiations, Prime Minister Ehud Olmert formed a coalition government comprising his party Kadima (centrist), Labor (centre-left), the Pensioners Party (single issue) and Shas (Sephardi Ultra-Othrodox) that took office on April 28th. The coalition contains a total of 67 MKs, giving it a majority of 7 in the 120 member Knesset. Whilst Kadima took the largest number of portfolios, Labor received seven ministries including Defence, Education and Infrastructure, Shas took four posts including Religious Affairs and Communications whilst the Pensioners were given the Health and new Pensioner Affairs positions.

The agreed coalition platorm states that‘the territory of Israeli settlement (in the West Bank) will be reduced’ and that it will work to shape the borders ‘through negotiation and agreement with the Palestinians on the basis of mutual recognition, previously-signed agreements, the principles outlined in the road map, an end to violence and the disarmament of the terror organizations’. However it states that, ‘if the Palestinians do not act in accordance with these conditions in the near term, the government will also take action in the absence of negotiations and an agreement with them, on the basis of a broad national agreement within Israel and a deep understanding with Israel's friends abroad’. The platform also calls for an increase in the minimum wage, expanding the "basket" of subsidized health services, increasing the state budget and instituting educational reforms in cooperation with the teachers' unions.

Time to end the Palestinian Funding Crisis and pay salaries for Public Sector Workers

A deal to partially resolve the ongoing Palestinian financial crisis has been proposed by representatives of the international community. Direct aid transfers to the Palestinian Authority have been significantly reduced since the election of the Hamas government in January, with the EU and US suspending direct aid on April 7th. The EU argued that it could not continue to give direct aid to the PA as the Hamas government had not yet agreed to reject violence (although has broadly held to a ‘calm’ since March 2005), recognise Israel or respect previous agreements made by the PA. However it committed to find other ways of making money available to the Palestinian people. As a result 160,000 Palestinian Public Sector workers, many of them PGFTU members, have not been paid their saleries for up to two months causing significant hardship and damage to the economy.

On May 9th the Quartet (comprised of the EU, US, Russia and the UN) agreed the creation of a ‘temporary international mechanism’ to channel money to pay public sector salaries for an initial three-month period, bypassing the Hamas-led PA. The scheme is being set up by the EU with input from other international institutions including the UN and World Bank. The scheme has received support from Palestinian President Mahmoud Abbas who said that he would, ‘like the mechanism approved by the Quartet last week implemented as soon as possible, so we can avoid this catastrophe’. Abbas has previously called for Hamas to respect existing agreements and recognise Israel but asked that the international community give Hamas time to adjust its policies and not punish the Palestinian people for exercising their democratic rights. PA Prime Minister Ismail Haniyeh of Hamas responded to the news saying “the Quartet have conditions. They aim to push the Palestinian government to make concessions that harm (Palestinian) rights and red lines and give the (Israeli) occupation legitimacy.” The Israeli cabinet announced in April that Israel would use withheld Palestinian tax-revenues to pay directly for essential Palestinian services delivered by Israeli providers. The Haaretz newpaper has also reported that the Israeli government will now also divert the funds into the new mechanism to help support the Palestinian health service.

TUFI believes it is essential that Palestinian public sector workers receive their salaries. Every effort must be made to ensure this mechanism exists as soon as possible and that provisions are established to provide back payment for the two months workers have been without salaries. This is not a long term solution to the problem, however if Hamas and the international community are unable to resolve their substantial disagreements, the potential to extend such a mechanism will ensure that Palestinian workers are not made to suffer as a result. We call on British Trade Unionists to lobby the UK Government to ensure Palestinian doctors, teachers and other public sector workers are able to be paid.

Histadrut wins for agency workers in the Health Service and the PGFTU marches on May Day

The Histadrut and a major healthcare provider have signed an important agreement enforcing the rights of thousands of agency cleaning workers in hospitals and branches. For the first time Clalit HMO will take responsibility for the conditions of over 5000 contract workers. This deal is unusual in that the Histadrut was acting on behalf of a group of workers that are not organsised.

Histadrut General Secretary Ofer Eini hailed the agreement saying, "today is a great day for contracted workers". He added that the agreement could serve as a model to all employers, thus improving the conditions of hundreds of thousands of low-income workers. As a result of the agreement employment companies bidding for cleaning services tenders will be required to provide a notarised certificate detailing all the suits filed against them in Labour Courts and the subsequent rulings, up to a year before they tender for work. The agreement stipulates the minimum pay for one hour's cleaning work, including all the components required by law, collective wage agreements and regulations. For example, as of the second year's work, the labour cost of each worker will be at least NIS 27.63 (£3.30) per hour. A company bidding for a tender will be required to stipulate how many of the cleaning staff will work, so that Clalit may calculate whether the price on offer enables it to pay workers adequately. Clalit will appoint an auditor to enforce the contract and make sure the contractor upholds labor laws, collective wage agreements and regulations. Clalit will be able to impose sanctions on the contractor or even terminate the contract if the HMO finds the company violated the law and agreements. Histadrut representatives will be permitted to meet workers at work and listen to their complaints or questions regarding their employment conditions.

The PGFTU held a major rally to celebrate May 1stInternational Workers Day. 5000 PGFTU members marched through Ramallah to the Palestinian Legislative Council offices, despite closure preventing members from the northern West Bank attending. General Secretary Shaher Saed called on the legislature to fight poverty and create jobs, improve legisltation to protect workers rights and for measures including free healthcare for the unemployed. The event was also addressed by 4 members of the PLC and a representative of President Abbas who called for the right of workers to have an independent state.

Further Rows between Hamas and Fatah whilst the Karni Crossing reopens

Tensions have continued to build between Hamas and Fatah as Hamas officially introduced its new security force in defiance of a Presidential veto. The 3000 member force is directly answerable to the interior ministry. It comprises Hamas militia members alongside members of sections of the security service and is headed by Jamal Abu Samhadana, a leader of the Gaza ‘Popular Resistance Committees’ that has been playing a key role in Quassam rocket attacks on Israel. Previously there had been some signs of reconciliation between the groups, with a document outlining common goals drafted by Fatah and Hamas prisoners in Hadarim prison in Israel, inlcuidng senior Fatah leader Marwan Bargouhti and Sheikh Abdel Halek Natshe of Hamas. The doument called for the creation of a new PLO including Hamas and Islamic Jihad and would give ‘de facto’ acceptance of the existence of the state of Israel by calling for a Palestinian state on the 1967 borders. The plan was praised by President Abbas and given a cautious welcome by Hamas PM Ismail Hanieh but was treated warily by Hamas Foreign Minister Mahmoud Zahar who said that the drafters did not have all the pertinant information. Meanwhile at a conference in Quatar, Damascus based Hamas leader Khaled Meshal argued that Hamas should join forces with Fatah on the platform of "liberating Palestine, not recognizing Israel and adopting the path of jihad and resistance."

Meanwhile Israel has fully reopened the Karni goods crossing between Gaza and Israel, enabling Palestinian exports from the Strip for the first time in recent months. The new Defence Minister, Labor leader Amir Peretz, stated to military comanders that ‘our war is against terror, not against the residents of the Strip."