December 2008 Update
TUFI’s monthly update looks at important trade union issues in Israel and the Palestinian territories, the Middle East Peace Process, regional developments, domestic Israeli and Palestinian affairs and primary issues affecting British trade union policy on Israel
Israeli Industrial News: Most Israeli firms expect lay-offs in 2009
Israeli employers faced with a global recession expect a difficult year for business and employment. According to a survey by the Federation of Israeli Chambers of Commerce survey of 160 trade and services companies, 68% of companies are expecting lower sales next year and over half are expecting to lay off staff.
The companies in the survey also predict that the shekel-euro exchange rate will be NIS 5.03/€ at the end of 2008 and rise to NIS 5.26/€ at the end of next year. They predict that inflation will soon reach 3.9% and GDP will only grow by 0.5% in 2009.
Israeli Industrial News: Israeli Economy feeling the recession
Economies the world over have been affected by what is being seen as the most severe economic crisis the world has seen since the Great Depression of 1929. The Israeli economy seemed relatively immune to the effects of the global crisis during its early stages, but as the crisis has developed into a fully-fledged recession in the US, Europe and Japan, export-orientated Israeli companies and global companies with centers in Israel are finding it difficult to continue with business as usual.
In the past several weeks the number of hi-tech companies that have laid-off workers in Israel has substantially grown. And Haia Bornstein, CEO of the Dialog employment agency, says there has been a drop of about 40 percent in the number of available positions over the past two months.
Jacob Richman, a recruitment consultant, said: “Since the economy in Israel is not big, salaries can go up fast if there is demand, and also drop fast. It's a big swing one way or the other." "In good times we had some 40 companies listing 120-130 positions. Now the average is fewer than 10 companies, with 10-20 jobs at most."
Israeli Industrial News: Israel guarantees pension plans
Israeli Prime Minister Ehud Olmert unveiled a long-awaited plan on 9 December to provide a safety net for fragile Israeli pension savings. The plan will cover retirement savings for those aged 57 and over and will partially guarantee savings of up to £230,000.
The government negotiated the plan after coming under mounting pressure from the Histadrut (Israeli TUC) to include a guarantee for pensioners in its £2.7 billion financial package designed to help the Israeli economy and boost growth and employment. Israeli pension plans, in particular, have been hit hard by the sharp fall in stock and bond markets in the wake of the global financial crisis.
UK engagement:Gordon Brown meets Palestinian Prime Minister
Gordon Brown, the Prime Minister held talks on Monday (15 December) with Palestinian Prime Minister Salam Fayyad ahead of the London Investment Conference. Gordon Brown stated that everyone was committed to advancing the peace process. The London Investment Conference, taking place on Monday and Tuesday (15-16 December), is being held in the City and its aim is to make progression on economic development in the Palestinian Territories. Commenting on the conference, the Prime Minister stated that: “It will promote Palestinian economic development, it will demonstrate the resilience of the Palestinian private sector, and it will show the considerable opportunities for partnerships with the United Kingdom.” (15/12/08) Gordon Brown also met Israeli Prime Minister Ehud Olmert on Tuesday (16 December).
UK engagement:UK pressure on Iran and support for Annapolis process reaffirmed
The Foreign Secretary, the Rt Hon David Miliband MP, made clear during the Foreign Affairs debate on Wednesday (10 December) that Iran continues to flout five UN Security Council resolutions. He called on Iran to comply with the repeated International Atomic Energy Agency requests for greater access and information and to accept the “E3 plus 3’s generous offer of June this year, which would give Iran financial and technological assistance to develop its civilian nuclear capacity”.
Miliband made clear that the UK “will lead the effort to make its choice clear, through national measures and with our partners in the EU and UN.” Also speaking at the debate, chair of LFI, Andrew Gwynne MP voiced his support for the ongoing negotiations between the Israelis and Palestinians. He also stressed the need for the international community, together with the incoming US Administration, to place the Annapolis Peace Process at the “top of their foreign affairs agenda from day one.”
MEPP:Hamas declares Israel truce over
The Islamist militant group Hamas says it has ended its six-month ceasefire with Israel in the Gaza Strip. As the ceasefire expired at 0400 GMT, on 19 December 2008, Hamas issued a statement blaming Israel which had not "respected" the truce. Israel's foreign ministry spokesman said the militants, who control Gaza, "had chosen violence over truth".
The Egyptian-brokered deal began on 19 June but has been tested regularly by Palestinian rocket attacks on Israel and Israeli operations in Gaza. Hamas said Israel had failed to ease its blockade of Gaza. Israeli officials insist that there was no commitment to ease the siege, under which Israel has allowed little more than basic humanitarian aid into Gaza. The UN's relief agency says the situation has created a "profound human dignity crisis".
MEPP:Israel release 209 Palestinian prisoners with another 18 prisoners expected to be released shortly
In a gesture designed to bolster Palestinian President Mahmoud Abbas, Israel released 209 Palestinian prisoners on Monday (15 December) who were transferred from Ofer Prison, near Jerusalem, to the Beituniya checkpoint in the West Bank. The remaining 18 prisoners are to be transferred from Shikma Prison in the Negev, to the Erez crossing on the Gaza-Israel border. Abbas greeted the 209 prisoners in the West Bank but made clear that Israel needed to release all Palestinian prisoners. Mark Regev, spokesman for Israeli Prime Minister Ehud Olmert said that:
“We hope these releases will be seen as an important confidence-building measure designed to strengthen the trust and the confidence in the [peace] negotiations.” (15/12/08)
MEPP:Israel maintains it has cracked down on illegal outposts and considers compensating Palestinians for settler violence
Israeli Defence Minister and Labour Leader, Ehud Barak made clear that Israel was carrying out a clampdown of settler outposts which were illegal under Israeli law. Barak said:
“The defence establishment has cracked down on illegal outposts……that over the last two years; no new outposts have been established. Three were evacuated and attempts to set up new ones were quickly foiled, like the Shvut Ami outpost, which was dismantled 20 times amid struggles against the settlers.” (14/12/08)
Barak added that the illegal outpost of Migron in the West Bank is currently in the process of being voluntarily evacuated which could take up to two years. Barak also said on Sunday (14 December) that his ministry was looking into compensating Palestinians in Hebron whose property was damaged by some settlers during the recent violence. Barak stressed that the Israel Defence Forces were adopting a tough stance against settler violence which includes detaining violators until the police arrive to make an arrest. Barak was also critical of the judicial system for their failure to impose longer sentences for settler violence.
Gaza:Hamas mark their 20th anniversary by staging mass rally in Gaza City and parades a mock of captured Corporal Shalit
The Hamas leader in Gaza, Ismail Haniya addressed a rally in Gaza City on Sunday (14 December) to mark the 20th anniversary of the militant group at which an estimated 200,000 Palestinians attended.
At the rally, Hamas paraded a person who was dressed as an Israeli soldier and stood before the crowd pleading in Hebrew to be released. This was in reference to captured Israeli soldier Corporal Shalit who last Thursday (11 December) marked his 900th day in captivity.
Gaza:Israel allows Gaza cash delivery
Israel allowed an armoured truck carrying the equivalent of £16m to enter the Gaza Strip from the West Bank on Thursday (11 December) in order to ease the cash shortage facing the territory. The current cash shortage has forced many banks in the Gaza Strip to close. Ehud Barak, Labour Leader and Israel's Defence Minister, approved the transfer following a request from the Bank of Israel's governor, Stanley Fischer. In a statement, the bank said it did not want to be responsible for the possible collapse of the Palestinian banking system.
Israeli Affairs:Hawks dominate the results of the Likud primaries
The Likud primaries which were held on Monday (8 December) placed a number of Israel's right-of-centre Likud members high up the party list. Israeli opinion polls showed that if elections were held today then the Likud party would defeat the ruling Kadmia led coalition. Likud Party leader Binyamin Netanyahu said that “we chose a new leadership for Israel. This is the best team that any party could have in our country.” However, media reports have stated that Netanyahu was keen to have a less right-wing party list in order to gain the centre ground of Israeli politics.
Among the strong performers in the primary were a former parliamentary speaker Reuven Rivlin, Benny Begin, the son of former Prime Minister Menachem Begin, and former Army Chief Moshe Yaalon who are all considered hawks. Moshe Feiglin, a settler who is banned from visiting the UK and advocates withdrawing the vote from non-Jewish Israeli citizens, came 20th on the party list; however, he has since been demoted to 36th.
Palestinian Affairs: Palestinian President’s plan to extend his mandate receives little public support
A poll conducted by the Palestinian Centre for Policy and Survey Research (PCPSR) published on (Thursday 11 December) showed that almost two-thirds of Palestinians share Hamas’s view that the term of Palestinian President Mahmoud Abbas ends in January 2009 and not in 2010 as Fatah and the President claim. The poll also showed support amongst three quarters of Palestinians for the call by President Abbas for new Palestinian elections in early 2009 if Palestinian unity talks fail. It is likely that President Abbas’ support could erode if Palestinian presidential elections are not held.
The poll showed that if Palestinian elections were held now in the Gaza Strip and the West Bank then Abbas’ Fatah party would gain 42% of votes while Hamas would win 28%.
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