Histadrut urges government to halt privatization plans in 2026 Economic Arrangements Bill

The Histadrut sent two formal letters to Finance Minister Bezalel Smotrich and Transportation and Road Safety Minister Miri Regev, expressing strong opposition to key provisions in the 2026 Economic Arrangements Bill. The letters, authored by Adv. Eyal Yadin, Chair of the Transport Workers’ Union, outlines the union’s position on proposals for the gradual operational privatization of Israel Railways and the establishment of new airports operated by private entities.

In the first letter, Adv. Yadin emphasized that the proposal to privatize major parts of Israel Railways is based on inaccurate data and ignores the significant improvements achieved over the past decade in passenger numbers, punctuality, and reliability. He further noted that previous attempts to privatize rail services in Israel—and similar efforts abroad—ended in failure, resulting in increased malfunctions and higher costs for the state. The Histadrut warned that such a move would severely harm thousands of workers, compromise passenger safety, and lead to higher service prices.

The second letter raised concerns about plans to transfer the operation of complementary airports to private hands. According to the union, these facilities constitute critical national infrastructure that cannot be managed according to the profit motives of private concessionaires. Adv. Yadin cautioned that privatizing airports could undermine workers’ rights and job security, weaken state oversight, and reduce service quality for residents in peripheral areas. Moreover, the move could set a dangerous precedent for the privatization of other essential infrastructures.

The potential threat to the employment of thousands of Israeli workers is only part of the damage the union foresees. Both proposed measures in the bill risk degrading public service quality and eroding Israel’s ability to maintain stable and secure national infrastructure. In light of these concerns, the Histadrut calls on the government to halt these initiatives and engage in professional dialogue.

Adv. Eyal Yadin, Chair of the Transport Workers’ Union, stated:
“Experience, both in Israel and worldwide, shows that privatizing national infrastructure is not a solution to deep-rooted challenges—it is a recipe for public harm. Israel Railways and airports are strategic assets meant to serve all citizens, not to become profit centers for private companies. Our responsibility is to sound the alarm before we pay the price in safety, service availability, and the livelihoods of thousands of workers. This is a moment for the state to choose strengthening public service—not weakening it.”