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Written by JONATHAN COOK in Nazareth JONATHAN COOK in Nazareth
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Category: News News
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Published: 05 February 2010 05 February 2010
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Last Updated: 05 February 2010 05 February 2010
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Created: 05 February 2010 05 February 2010
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Nearly 50,000 Palestinians from the West Bank are working in Israel
-- following the easing of restrictions on entering Israel under the
“economic peace” promised by Benjamin Netanyahu, the Israeli prime
minister -- and continue to have such contributions docked from their
pay.
Complicit in the deception, the report adds, is the Histadrut, the
Israeli labour federation, which levies a monthly fee on Palestinian
workers, even though they are not entitled to membership and are not
represented in labour disputes.
“This is a clear-cut case of theft from Palestinian workers on a grand
scale,” said Shir Hever, a Jerusalem-based economist and one of the
authors of the report. “There are no reasons for Israel to delay in
returning this money either to the workers or to their beneficiaries.”
The deductions started being made in 1970, three years after the
Israeli occupation of the Palestinian territories began, when
Palestinian workers started to enter Israel in significant numbers,
most of them employed as manual labourers in the agriculture and
construction industries.
Typically, the workers lose a fifth of their salary in deductions that
are supposed to cover old age payments, unemployment allowance,
disability insurance, child benefits, trade union fees, pension fund,
holiday and sick pay, and health insurance. In practice, however, the
workers are entitled only to disability payments in case of work
accidents and are insured against loss of work if their employer goes
bankrupt.
According to the report, compiled by two human rights groups, the
Alternative Information Centre and Kav La’Oved, only a fraction of the
total contributions -- less than eight per cent -- was used to award
benefits to Palestinian workers. The rest was secretly transferred to
the finance ministry.
The Israeli organisations assess that the workers were defrauded of at
least $2.25bn in today’s prices, in what they describe as a minimum and
“very conservative” estimate of the misappropriation of the funds. Such
a sum represents about 10 per cent of the PA’s annual budget.
The authors also note that they excluded from their calculations two
substantial groups of Palestinian workers -- those employed in the
Jewish settlements and those working in Israel’s black economy --
because figures were too hard to obtain.
Mr Hever said the question of whether the bulk of the deductions --
those for national insurance -- had been illegally taken from the
workers was settled by the Israeli High Court back in 1991. The judges
accepted a petition from the flower growers’ union that the government
should return about $1.5 million in contributions from Palestinian
workers in the industry.
“The legal precedent was set then and could be used to reclaim the rest of these excessive deductions,” he said.
At the height of Palestinian participation in the Israeli labour force,
in the early 1990s, as many as one in three Palestinian workers was
dependent on an Israeli employer.
Israel continued requiring contributions from Palestinian workers after
the creation of the Palestinian Authority in 1994, arguing that it
needed to make the deductions to ensure Israeli workers remained
competitive.
However, the report notes that such practices were supposed to have
been curbed by the Oslo process. Israel agreed to levy an “equalisation
tax” -- equivalent to the excessive contributions paid by Palestinians
-- a third of which would be invested in a fund that would later be
available to the workers.
In fact, however, the Israeli State Comptroller, a government watchdog
official, reported in 2003 that only about a tenth of the money levied
on the workers had actually been placed in the fund.
The finance ministry has admitted that most of the money taken from the
workers was passed to Israeli military authorities in the Palestinian
territories to pay for “infrastructure programmes”. Hannah Zohar, the
director of Kav La’Oved who co-authored the report, said she believed
that the ministry was actually referring to the construction of illegal
settlements.
The report is also highly critical of the Histadrut, Israel’s trade
union federation, which it accuses of grabbing “a piece of the pie” by
forcing Palestinian workers to pay a monthly “organising fee” to the
union since 1970, even though Palestinians are not entitled to
membership.
Despite the Histadrut’s agreement with its Palestinian counterpart in
2008 to repay the fees, only 20 per cent was returned, leaving $30m
unaccounted for.
The Histadrut was also implicated in another “rip-off”, said Mr Hever.
It agreed in 1990 to the Israeli construction industry’s demand that
Palestinian workers pay an extra two per cent tax to promote the
training of recent Jewish immigrants, most of them from the former
Soviet Union.
Mr Hever said that in effect the Palestinian labourers were required to
“subsidise the training of workers meant to replace them”. The funds
were never used for the stated purpose but were mainly issued as grants
to the families of Israeli workers.
In one especially cynical use of the funds, the report notes, the money
was spent on portable stoves for soldiers involved in Israel’s
three-week attack on Gaza last year.
In response, the finance ministry called the report “incorrect and
misleading”, and the Histadrut claimed it was “full of lies”. However,
neither provided rebuttals of the report’s allegations or its
calculations.
Mr Hever said the government body responsible for making the
deductions, the department of payments, had initially refused to
divulge any of its figures, but had partly relented after some
statistics were made available through leaks from its staff.
Assef Saeed, a senior official in the Palestinian Authority’s labour
ministry, said the PA was keen to discuss the issue of the deductions,
but that talks were difficult because of the lack of contacts between
the two sides.
Jonathan Cook is a writer and journalist based in Nazareth, Israel. His
latest books are “Israel and the Clash of Civilisations: Iraq, Iran and
the Plan to Remake the Middle East” (Pluto Press) and “Disappearing
Palestine: Israel's Experiments in Human Despair” (Zed Books). His
website is www.jkcook.net.