The Minister of Economy and Industry, Amir Peretz, and Histadrut Chairman Armon Bar-David, met on Monday in order to examine ways to reduce unemployment in Israel. In the meeting, they agreed to found a roundtable with the following participants: workers’ representatives from the Histadrut, employers’ representatives, the union of self-employed workers, and representatives of the Ministry of Treasury, the Ministry of Economy and the Ministry of Labor. 

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Bar-David and Peretz agreed on the need to implement the German model that would allow flexible unemployment benefits. The model, formulated by the Ministry of Economy and Industry, in consultation with officials in the MoF, allows employers to employ workers part-time according to demand and need, with the state supplementing the employee's wages, proportionately, through the employer.

Histradrut Chairman, Arnon Bar-David: "The flexible unemployment policy is a significant step, and has already effectively reduced the unemployment rate in many countries. There are employers who want to bring workers back to work and we have a solution that all parties benefit from.”

"Time plays an important role here – the implementation of the German model as early as possible could give the economy the stimulus needed for its rehabilitation.Together with the Minister of Economy and Industry, who is committed to the issue, and other authorities in the economy, we will work to bring about an appropriate solution that provides a safety net for workers and strengthens the Israeli economy."

The Minister of Economy and Industry, Amir Peretz: “The chairman of the Histadrut and I are committed to the main challenge of the Israeli economy, which is to reduce unemployment and return the public to full employment as much as possible. Together with all the authorities in the ministry, we are sure that it is time to apply the German model alongside the expansion of the methods and funds for encouraging and stimulating employment and job development."