The Histadrut sent letters to Finance Minister Bezalel Smotrich and Transport Minister Miri Regev on Sunday demanding that they prevent privatization moves in Israel’s transportation sector, two weeks after the Finance Ministry announced its intention to privatize Israel Railways. In the letters, Transport Workers Union Chair Eyal Yadin called for halting the advancement of clauses in the 2026 Arrangements Law that promote privatization of the railways as well as the operation of new airports by private entities.
“Israel Railways and the airports are strategic infrastructure assets intended to serve all citizens of the state, and not to become a source of profit for private companies,” Yadin wrote. “The accumulated experience, in Israel and around the world, shows that the privatization of national infrastructures is not the solution to deep-rooted problems, but a recipe for harm to the public. Our responsibility is to warn in time, so that we do not find ourselves paying the price in safety, in service availability, and in thousands of workers losing their employment security. This is a moment in which the state must choose to strengthen the public service and not weaken it.”
The proposal to privatize the railway and to allow private operation of airports was published two weeks ago as part of a draft of the Arrangements Law, the omnibus reform legislation presented each year alongside the state budget. Promoting the privatization as part of the Arrangements Law, as opposed to specific legislation, reduces the parliamentary and public debate on the issue and also the power of the Ministry of Transport.
The railway privatization proposal has drawn criticism from senior officials and experts in the field of transportation, who explained that it is a step “that may not be feasible,” that goes against global trends, and whose necessity at this moment is unclear.
Yadin wrote in his appeal that the proposal to privatize central parts of Israel Railways relies on incorrect data and ignores the increase over the past decade in the number of passengers and in punctuality and reliability indicators. He noted that the previous attempt at railway privatization in Israel ended in failure, with an increased number of accidents and a high cost to the state. Similar moves around the world led to the same results, he added.
In a second appeal, Yadin warned against the intention to transfer the operation of complementary airports into private hands. According to the union, airports represent critical national infrastructure that cannot be managed according to the profit considerations of the private sector. Yadin added that privatizing airports could harm the rights of workers and their employment security, the state’s ability to supervise, and the service provided to residents of the periphery. In addition, the move could create a dangerous precedent for the privatization of additional essential infrastructures.
The union warned that the two moves could harm the quality of service to the public and the ability to maintain the stability and safety of Israel’s national infrastructures, and threaten the employment of thousands of workers. In light of these points, the Histadrut called on the government to halt the moves and open a professional dialogue.
Two weeks after the Finance Ministry announced its intention to privatize the railway, the Ministry of Transport still refuses to say whether it will oppose the move. In response to queries on the matter, which began about two weeks ago, the ministry’s spokespersons referred the questions to one another and refused to answer Davar’s question of whether the ministry would oppose the move.
The ministry’s silence regarding the proposal to privatize a large and central body under its responsibility can be interpreted as support for the move, or alternatively, as an attempt to reach understandings with the Finance Ministry quietly and without media storms.
This is a surprising silence, since according to State Comptroller reports from recent years, Israel Railways is the largest body under the responsibility of the Ministry of Transport, with more than 4,000 employees and roughly 96 million passenger trips per year.
The Ministry of Transport also refused to provide a response for this article.
