The Construction Industry needs better solutions; Bar-David called on the Minister of Housing and Construction and the Minister of Interior to regroup

Adi Marcus
Apr 07, 2024

On Thursday, Arnon Bar-David, chairman of the Histadrut, called on the Minister of Housing and Construction and the Minister of Interior for immediate intervention to address the ongoing crisis in the construction and infrastructure sector.

For the last six months, the shortage of foreign workers following the halt in the entry of Palestinian workers into Israel has led to a significant reduction in construction work across the country. As a result, numerous construction projects have been delayed, housing prices have risen, and other products and services have become more expensive.

Whilst the government has approved a significant increase in the quota of foreign workers permitted to work in Israel within the sector, the complex bureaucratic process they mandate is resulting in merely dozens of workers arriving in Israel each week.  More than 20,000 have passed the screenings and are waiting to arrive in Israel.

“The purpose of establishing new corporations was to enable the arrival of a large number of workers and allow the sector to get back on track. However, not only is the number of workers allowed to enter significantly lower than expected but the workers who do arrive in Israel are being directed mostly to the veteran manpower corporations, with only a small number reaching the newly established ones. This makes it difficult for the new corporations to begin operations, thwarting their establishment’s initial goal. As a result, the recovery of the sector is hampered, which has consequences for all workplaces in the sector and all those related to it.” – Wrote Bar David in his letter to the Minister of Housing and Construction and the Minister of Interior.

These newly established corporations were intended to benefit the sector and the economy as a whole, including reducing the cost of living. Given the government’s inability to implement a better solution, Bar-David called on the Minister of Interior and the Minister of Housing and Construction to convene an urgent meeting to develop effective solutions that will allow the construction and infrastructure sector to resume full activity as soon as possible. Arnon specifically proposed bureaucratic streamlining, increasing the quota of foreign workers for new corporations and promoting competition among manpower corporations.

The Histadrut is concerned with the construction and infrastructure sector crisis that is causing significant damage to the Israeli economy. A swift and effective resolution to the crisis is essential to prevent further harm to economic growth and the cost of living.

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