Precarious Work in the Shadows of the Conflict

With the rise of freelance, gig, and hourly employment rising, the landscape of work is evolving rapidly. This shift has amplified the prevalence of precarious work in Israel, exposing the diminishing safety net workers may expect. The issues facing a growing segment of Israel’s workforce in navigating a landscape of uncertainty was a key topic in the recent Labour conferece in Eilat, where Histadrut leaders and employers met for discussion on the future of work in Israel.

“Changes in employment patterns in the labor market are constantly occurring. We are witnessing a trend of increased employment of freelancers in various sectors, in liberal professions, and also in the desire of employers to outsource certain positions and in practice employ self-employed or freelancers,” said Idan Orr, UCAPSE Head of National Division, at a panel on freelance rights. “This situation requires us, as a workers’ organization, employers, and the state, to pay attention to this, with an emphasis on the rights of the self-employed and freelancers. The situation has even sharpened since the outbreak of the war, the consequences of which have made their mark on the entire economy, but in this extreme situation, we can identify the depth of the gaps between the self-employed, freelancers, and employees.”

The war has amplified the pre-existing precariousness of these workers. Unlike those in unionized positions, freelancers lack essential safety nets like guaranteed income, paid leave, and comprehensive benefits. The sudden disruption caused by conflict leaves them exposed, with limited recourse.

Rami Beja, Chairman of the Freelancers’ Forum at the Histadrut, emphasized this point: “The world of work is renewing itself, and by 2030 there will be a million freelancers in Israel. We need to prepare for this and give full equal rights to freelancers as well. The coming year is going to significantly burden the freelancer population, who, unfortunately, have become the state’s ATM.”

He further emphasized the scale of this issue: “There are 700,000 individual self-employed, and if they are sick, they have no source of income.” This lack of a safety net is a critical concern.

Despite these challenges, the Histadrut is actively working to address these issues. “The Freelancers’ Division that we have now established in the Histadrut’s Freelancers’ Forum is real news. Our goal is that an independent service provider who does not employ workers will receive the same safety net as a salaried employee.”

But the lack of a safety net is not exclusive to the self employed. Within the employed workforce, we see more and more hourly workers, and they face a similar plight.

Adv. Hila Shienok, the Director of Policy of the Histadrut, stated : “Hourly workers, who are inherently the weaker and poorer workers in the economy, were left without any response or safety net during the war. This is not a small group, but about 32% of salaried workers in Israel.”

Shienok explained the vulnerability of this group: “Because the scope of employment of hourly wage workers is not guaranteed, many employers preferred to reduce their work volume, instead of putting them on unpaid leave, which could have entitled them to unemployment benefits. An employee who was employed weekly for 30 hours on an hourly wage, simply had their work volume reduced to five hours a week. Thus, they were denied eligibility for unemployment benefits, but their salary was significantly affected. These workers did not receive any compensation from the state. This is part of the significance of the state’s refusal to recognize the flexible unpaid leave model, which the Histadrut and employers recommended, and which was intended to compensate employees for reducing their work volumes.”

Shienok presented findings from a study conducted by the Arlozorov Forum at the request of the Histadrut, which revealed that 56% of hourly workers in Israel do so out of necessity, because they could not find work on better terms, or because this is the accepted employment format in their profession.

The Histadrut recognizes the urgent need to address these challenges. Adam Blummenberg, Director-General of the Trade Union Division and Deputy Director-General of Economics and Policy at the Histadrut, stated: “The uncertainty created by the war caused absolute chaos in the labor market, mainly due to the lack of clear mechanisms. This reality led to harm to many workers and employers. Hundreds of thousands of evacuees and workers who were prevented from reaching their workplaces were in complete limbo for months regarding their rights. Employers put workers on unpaid leave even though there was no mechanism for this in the law. Each time, the mechanism was approved retroactively, for a limited period, with a delay of months, after facts had already been established on the ground. The reality that exists today does not provide the required safety net and does not create certainty in times of emergency. We must change this by creating clear and long-term mechanisms. It is important to ensure that above the safety net there is an additional layer that will be subject to discretion and collective bargaining according to the circumstances. The economy needs to be able to act quickly and create flexible solutions to ensure a safety net for workers and the self-employed.”

In addition to the work of the Histadrut’s Freelance Forum, the Histadrut is advocating for significant changes; Recognizing the inherent instability faced by many hourly workers, the Histadrut advocates for stricter regulations on this form of employment. Workers who have demonstrated long-term commitment and consistent hours should be afforded the security of monthly employment. This policy shift would not only protect workers from precarious conditions but also eliminate the current financial advantage employers gain from maintaining a system that leaves workers exposed and without adequate safety nets.

The Histadrut will continue to champion the rights of those in non-traditional employment, striving to create a more equitable and secure future for all.

This article incorporates information taken from Davar articles on Eilat Conference panels discussing hourly workers and on self employed workers.