Israel faces 'unprecedented strike' over Netanyahu's legal overhaul, union warns


Thomas Helm
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Workers across Israel are ready to strike on a potentially unprecedented scale after the government on Monday passed the first bill in a package of legal reforms that critics say could end democracy, a union leader told The National.

Peter Lerner, a senior official in Israel's biggest labour union, Histadrut, also singled out Prime Minister Benjamin Netanyahu for missing “the historic opportunity to heal our nation and bring Israel back to sanity,” after he rejected a last-ditch compromise package co-ordinated by the union.

The government’s late rejection of the proposals paved the way for it to pass legislation that ends judges' ability to strike down parliamentary legislation that is deemed “unreasonable”.

The bill’s passage aggravated mass protests that have been taking place across the country for 29 weeks.

Dozens of demonstrators were arrested throughout Monday and early Tuesday as thousands attempted to block roads and access to the parliament in Jerusalem.

The government’s success came despite hope, until the very last moments, that a compromise could be reached before the legislation was passed.

“We placed a suggestion on the table, met the prime minister and engaged with all of the front-running political parties to try and find a compromise,” Mr Lerner said.

“People were celebrating it. We felt that there was almost no daylight between the different sides. But on Monday afternoon, the prime minister’s party announced that they did not accept the proposal.”

Mr Lerner’s organisation is now issuing a Declaration of a Labour Dispute, which sets in motion the process for calling a general strike if the union’s demands are not met by the government within 15 days.

Red lines that could provoke a strike by the union include the firing the attorney general and government plans for huge government reform of the selection of judges.

A strike is likely to have unprecedented consequences for the government, Mr Lerner believes.

“There have been national general strikes in the past. What is unique about this is that there is huge consensus not only within the world of labour but also within business. If this strike is done in concert with business organisations, it could therefore be of an unprecedented magnitude.”

“The potential laws that they are talking about would have a direct impact on workers,” he added.

Despite growing consensus, Mr Lerner highlighted that trade unions must strike a fine balance, given that many workers are against action and that the government is democratically entitled to enact policy, as well as the strong anti-union sentiment already held by many coalition members.

Riot police try to clear demonstrators with a water cannon during a protest against judicial overhaul in Jerusalem on Monday. AP
Riot police try to clear demonstrators with a water cannon during a protest against judicial overhaul in Jerusalem on Monday. AP

Another challenge is shaping a strike in a manner that would be effective against an increasingly emboldened government.

Mr Lerner praised a rare 24-hour strike by the Israeli Medical Association on Tuesday, which shut down large swathes of the country’s healthcare system.

I think the medical strike is very important. Other key affiliates of ours such as social workers have declared similar steps.” he said.

“But unfortunately, they don’t have impact on policy. They do send a clear message, but our wider strike efforts must always have a larger, achievable goal, which is why we need to focus not on simply disruption, but changing the direction of things.”

“Our message to the government is very clear: progress with broad agreement or face serious consequences. We can’t allow deeper division and polarisation in the country.”

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The major Hashd factions linked to Iran:

Badr Organisation: Seen as the most militarily capable faction in the Hashd. Iraqi Shiite exiles opposed to Saddam Hussein set up the group in Tehran in the early 1980s as the Badr Corps under the supervision of the Iran Revolutionary Guards Corps (IRGC). The militia exalts Iran’s Supreme Leader Ali Khamenei but intermittently cooperated with the US military.

Saraya Al Salam (Peace Brigade): Comprised of former members of the officially defunct Mahdi Army, a militia that was commanded by Iraqi cleric Moqtada Al Sadr and fought US and Iraqi government and other forces between 2004 and 2008. As part of a political overhaul aimed as casting Mr Al Sadr as a more nationalist and less sectarian figure, the cleric formed Saraya Al Salam in 2014. The group’s relations with Iran has been volatile.

Kataeb Hezbollah: The group, which is fighting on behalf of the Bashar Al Assad government in Syria, traces its origins to attacks on US forces in Iraq in 2004 and adopts a tough stance against Washington, calling the United States “the enemy of humanity”.

Asaeb Ahl Al Haq: An offshoot of the Mahdi Army active in Syria. Asaeb Ahl Al Haq’s leader Qais al Khazali was a student of Mr Al Moqtada’s late father Mohammed Sadeq Al Sadr, a prominent Shiite cleric who was killed during Saddam Hussein’s rule.

Harakat Hezbollah Al Nujaba: Formed in 2013 to fight alongside Mr Al Assad’s loyalists in Syria before joining the Hashd. The group is seen as among the most ideological and sectarian-driven Hashd militias in Syria and is the major recruiter of foreign fighters to Syria.

Saraya Al Khorasani:  The ICRG formed Saraya Al Khorasani in the mid-1990s and the group is seen as the most ideologically attached to Iran among Tehran’s satellites in Iraq.

(Source: The Wilson Centre, the International Centre for the Study of Radicalisation)

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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  • An arms embargo
  • A ban on uranium enrichment and reprocessing
  • A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
  • A targeted global asset freeze and travel ban on Iranian individuals and entities
  • Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
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Best Agent: Jorge Mendes

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Updated: July 25, 2023, 2:41 PM