IN ISRAEL under a 'Labour' government, just as in Britain under the Tories, the talk is of privatisation and market values.
But, in a twist characteristic of the distinct form of capitalist exploitation brought about by the Zionist colonial project in Palestine, many of the enterprises involved are under the direct control, not of the state, but of the Histadrut, Israel's TUC.
In last year's elections, the Labour Party, which had controlled the Hisdtadrut since its foundation, was defeated by a new coalition of Zionist left and liberal parties and independents, headed by former Health Minister Haim Ramon.
This new bloc, which took almost 50% of the votes, represents a new generation of Israeli activists who call themselves 'post-Zionist'.
Ramon, who resigned from Rabin's cabinet in protest at the government's failure to expropriate the Histadrut's sick fund, which insures over 70% of Israel's population, campaigned against the corruption and bureaucracy of the Histadrut old-guard.
A technocrat and a moderate on Israeli-Palestinian affairs, he is considered by many as a likely successor to Rabin as leader of the Labour Party.
Although often depicted as 'Israel's powerful trades union confederation', the Histadrut is far from being an independent trade union. It is in fact a vast corporation, one of the major economic powers in Israel, and a central element of the unique Israeli mixture of state capitalism and a free-market bourgeoisie.
It is also a full participant in the economic exploitation of the Palestinian people and the Occupied Territories. From its establishment in 1920 (as the 'General Federation of Hebrew Labour in the Land of Israel'), the Histadrut was an avowedly Zionist and exclusively Jewish body, committed to the principle of 'Conquest of Labour', ie excluding Palestinian workers from employment.
Former Prime Minister Golda Meir remarked that in 1928 she "was put on the Histadrut Executive Committee, at a time when (it) was not just a trade union organisation. It was a great colonising agency".
Banks
As part of its contribution to the creation of a Jewish state, the Histadrut developed many institutions not normally associated with trades unions, including a bank, an insurance company, a construction company, bus, shipping and air transport companies, a sick fund, newspapers, agricultural and industrial trading agencies, a publishing house, bookshops, hospitals, department stores, supermarkets, vocational schools, an electronics company, and even Israel's major soccer clubs.
The 'Department for Trade Union Affairs' is a tiny part of this vast empire, which has become the country's largest employer after the state, producing 21% of Israel's GNP in 1988.
It controlled one-third of the private sector of the economy, including 82% of agriculture, 90% of transport, 25% of industry, 35% of banking and 23% of insurance.
Employers
But this vast wealth and power is not used for the benefit of Israel's working class. In fact, 80% of the citizens of Israel are members of the Histadrut, and there is no bar to private employers joining, and even holding office.
The Histadrut, like any other employer, has sacked workers, cut wages, and worsened working conditions. In September 1990, the Histadrut-owned Soltam company fired workers, whom it described as 'riff-raff', from its Yokneam factory; when the workers protested and set up a picket line, the company set dogs on them.
Although affiliated to the International Confederation of Free Trade Unions, the Histadrut was a leading participant in Israel's trade with South Africa. The Israeli daily Ha'Aretz reported in 1982 that Histadrut-controlled companies "constitute the main part of foreign trade with South Africa".
The Histadrut's Koor subsidiary set up, in partnership with the Iron and Steel Corporation of South Africa (ISCOR), a major sanctions-breaking enterprise, known as ISKOOR to import coal and semi-processed steel from South Africa, process it in Israel, and export it to the EC under Israel's preferential trade agreements.
ISKOOR, Soltam and the electronics company Tadiran also provided arms and other military equipment to South Africa.
The colonisatory role of the Histadrut is seen most clearly in its relation to Palestinians from the Occupied Territories.
All workers in Israel, whether or not they are members of the Histadrut, are obliged to pay an 'organisation tax' of about 0.8% of their salary to the Histadrut for 'trade union protection'.
Palestinians from the Occupied Territories are also obliged to contribute to it, even though they cannot become members of the Histadrut.
Most of the trade union work of the Histadrut is carried out by local trades councils; these have not been established in the Occupied Territories, and would in any case have no standing against employers in Israel.
Workers' Hotline, a group working with Palestinian migrant workers, has raised dozens of cases in which the Histadrut has failed to represent the interests of these workers in cases of redundancy, breach of collective agreements, denial of minimum wages, discriminatory treatment by Israeli social security, illegal arrest and other denials of their rights.
Palestinians
In effect, millions of dollars have been exacted by the Histadrut from Palestinian workers, for minimal services. The Histadrut, which formally does not support the annexation of the Occupied Territories, is heavily involved in construction work in the illegal settlements.
It has also established Workers' Councils – for Jewish settlers only – in the Occupied Territories. Most strikes in Israel have been coordinated by local Workers' Councils, which are generally more militant than the officials of the Histadrut's "Department of Trade Union Affairs".
The Histadrut itself has never conducted a major strike. Instead, it has frequently faced strikes of its own workers.
These it has either repressed with state help, as with the Haifa seamen's strike of 1952, or through co-option of strikers leaders, as with the El Al strike of 1982.
It is this body which both the government and its own leaders are now attempting to dismantle. Labour Party leader Rabin has made his position explicit:
"Trade unions that reject privatisation are worse than Hizbollah", he said during a recent visit to New York.
Histadrut Secretary-General Ramon, meanwhile, wishes to develop the Histadrut's core enterprises, while divesting it of encumbrances such as the sick Fund and the Department of Trade Union Affairs. This could lead to the development of truly independent trade unions in Israel.
However, unless these groups clearly identify the reasons for the Histadrut's failure to operate as a true trade union – in particular, its task in the Zionist colonisation of Palestine – then they will remain marginal, unable to avoid making the same mistakes.
The development of an independent workers' movement in Israel and Palestine requires a break from Zionism, from the Histadrut's support for Israeli apartheid, and from Israeli state capitalism.