June 1999: Worker's Rights...... Hard Times

 

 

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The Palestinian Human Rights Monitor
The bi-monthly publication of the PHRMG:

   

II. Israeli Labor and Social Benefits Law

On October 8th, 1970, the Israeli government decided, by non-parliamentary fiat, that Palestinian laborers entering Israel from the West Bank and Gaza Strip would be treated equally to Israeli citizens and residents with regard to wages and benefits.

According to Aharon Barzani, the director of the Payments Section Division of the Israeli Employment Service, this decision was made both to protect Palestinian workers and to insure that Palestinian workers would not undercut Israeli citizens in the job market.

The entry of Palestinian workers into Israel is coordinated through the Israeli Employment Service, which was created by a decision of the government of the State of Israel on October 8th, 1970. The Employment Service was established on one hand to ostensibly ensure that equality of wages and benefits were provided Palestinian workers and on the other hand to control and supervise the workers entering the Israeli economy.

Furthermore, the labor laws of the State of Israel do not distinguish between workers according to their national origin or citizenship. Israeli labor law applies according to the location of employment, not according to the individual employee. That is, if a worker is employed within the borders of Israel,

the labor law applies to him, regardless of his nationality. Therefore, Palestinian workers are entitled, under law, to the same minimum wage, paid vacation, severance pay, maximum working hours, etc., as Israeli citizens.

As we shall see, these legal entitlements are, in practice, often unfulfilled.

Many rights and obligations for workers in Israel, beyond those determined by legislation, are established by collective labor agreements in which employers and labor unions bargain to establish the terms of employment for a group of workers. This means, “the scope of rights is determined by the social partners active within the sphere of industrial relations.”

The Collective Agreements Law, 1957 (C.A.L.) provides equal treatment for all employees included in a given bargaining unit. Because the scope of the bargaining unit is defined by each particular collective agreement, the question of whether Palestinian workers enjoy equal rights as derived from such agreements depends on the terms of each particular agreement. The vast majority of Palestinian workers are employed in industries such as construction, agriculture and manufacture which are governed by collective agreements which cover all individuals employed in the industry, regardless of citizenship or nationality.

According to the Histadrut, the General Federation of Labor in Israel, all collective agreements to which it is party cover workers of any nationality, including Palestinians from the Occupied Territories, despite the fact that Palestinians may not join the Histadrut as members.

It may be concluded, therefore, that at least as the law is written in statutes and collective bargaining agreements, Palestinian workers are not discriminated against. More often than not, for a variety of reasons, Palestinian workers are not able to exercise, in practice, the rights that they have under law.

Unlike the de jure equality which laborers from the Occupied Territories enjoy with regard to legislation and collective bargaining agreements, Palestinian workers have been and continue to be the victims of discrimination at the hands of Israel’s National Insurance Law. As explained in the handbook of the Payments Section Division of the Employment Service, “[a]ccording to the National Insurance Law, regulation 3(b) of the National Insurance by-laws (collection of insurance premiums), employers within Israel employeeing (sic) workers whose place of residence is Judea, Samaria

or Gaza shall pay insurance premiums for these workers according to the same percentages [as they pay for Israeli workers] via the Employment Service.”

Additionally, the Israeli Employment Service deducts from Palestinian worker’s paychecks at the same rates it deducts from Israeli workers’ salaries.

In other words, Israel collects the same amount of insurance money from Palestinian workers as it collects from Israeli workers. Yet, Palestinian workers are not eligible for the entire range of benefits which Israeli workers enjoy under the National Insurance system. Palestinian workers, as non-citizens of Israel, receive just three of the strands of National Insurance benefits which Israeli contributors to the National Insurance pool receive. Palestinian workers are, therefore, forced by the Israeli government to pay for benefits that they are ineligible under Israeli law to receive. This patent discrimination is the result of a governmental desire to protect Israeli workers from cheaper competition from the West Bank and Gaza Strip.

This iniquity, which has persisted during the thirty years that workers from the Occupied Territories have entered Israel for work, has recently been challenged in the courts and acknowledged by the Israeli authorities. Israeli authorities have long justified this practice explaining that the differential funds (i.e., those contributions which are not returned to workers through the National Insurance Institute) are transferred by the National Insurance Institute (N.I.I.) to the Israeli Defense Forces (I.D.F.) Civil Administration, the military government in the Occupied Territories. The Civil Administration has supposedly spent those funds, over the years, for the “general welfare” of the population in the Territories. Even if one accepts at face value the tenuous Israeli assertion that the Civil Administration did indeed spend the funds on “general welfare,” the practice nevertheless constitutes an illegal conversion of personal insurance funds into a general welfare tax. These moneys are deducted from workers’ paychecks in the name of insurance benefits, not in the name of contribution to I.D.F. expenditure. This constitutes, in the words of Professor Frances Raday of the Hebrew University, a form of “taxation without representation.”

In January 1994, Kav La’Oved (Worker’s Hotline), an Israeli NGO devoted to protection of workers, commenced litigation on behalf of a number of workers to recover the discrepancy in funds. The lawsuit as well as subsequent agreements between Israel and the PNA which affect this issue will be discussed later in section VII-I.

 

 
 

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