BICOM

An open-ended general strike went ahead in Israel today, despite all-night negotiations between the Histadrut, Israel’s largest trade union, and the Treasury. The dispute revolves around the employment status of contract workers, and will shut down basic services, including government offices, institutions of higher education and banks.

Israeli contract workers are hired on a non-permanent basis and do not receive the social protections and conditions provided to permanent employees. The issue was one of the main focal points of the mass social protests that took place in Israel during the summer of 2011. Between 250,000 and 350,000 Israelis are employed through non-permanent contracts.

The Finance Ministry raised hope early this morning that a strike could be averted by offering an additional NIS 200 million for a budget aimed at improving the conditions of contract workers. However, Histadrut Chairman Ofer Eini said the offer-represented progress, but did not say if he had accepted it. Israeli Finance Minister Yuval Steinitz said the strike could cost the Israeli economy billions of shekels and accused the Histadrut of being entrenched in its positions.

Eini and Steinitz are expected to meet again today at 2.00 pm (12.00 gmt) at the National Labour Court in another effort to end the months-long dispute over contract workers.