Cooperation Between Major Players In The Labor Market

Cooperation between major players in the labor market – unique events or the start of a trend?

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There are two new developments in Israeli labor relations. Labor unions and the employers' associations have been cooperating, and the beginnings of inter-sectoral partnership are visible.

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The ability to secure a long standing leapfrog depends on creating partnership, a mechanism in which the government takes the lead in continuous cooperation between the government, employers and employees. Partnership allows decision makers to steer the labor market and the economy based on long term planning. Partnership improves governance and binds all sectors to a common future vision. Countries like Denmark and Ireland have institutionalized mechanisms supporting partnership for discussing issues related to developing the labor market and the economy.

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This issue of ReViews identifies two developments characterizing the Israeli labor market.  Firstly, cooperation between the new Histadrut (the main labor union) and employers' organizations during labor disputes. The heads of the representative organizations of employees and employers, Ofer Eini and Shraga Brosh both believe that dialogue is the best method to settle labor disputes.

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Secondly, the beginnings of partnership are visible. In situations in which major issues of concern to all employees in Israel are on the agenda, the government, employers and employees succeed in cooperating and reaching agreement that serves the public interest. Nevertheless, their cooperation does not yet amount to partnership.  While the three key players are involved, the government has not taken the lead through formal mechanisms that permit long-term dialogue.