Report Jan10 ENG [Kav LaOved -- Economy of the Occupation]

41
Haa Zha , Sh Hv T E O A Socioeconomic Bulletin 25 *   January 2010 Israel Owes Billions of Shekels to Palestinian Workers זכר המרכזמ ההיצמרופניא להיצמרופניא ליביתטננרטל אתיביטנטנרל אTHE ALTERNATIVE INFORMATION CENTER

Transcript of Report Jan10 ENG [Kav LaOved -- Economy of the Occupation]

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Ha a Z ha , Sh H v

Economy of the Occupation

S m Bu t № 25___________________________________________Israel Owes Billions of Shekels

to Palestinian Workers___________________________________________P K L A I C

E : C Ha kba th, AICL (H ): Ya R aL (E ): AIC Staff

G : a H vP : Lat Pat a hat P t g P , J u a m a d B t Ja a

Ja ua y 2010

Ph t g aph th C v : S g Yah , J u a m 2009

T p tu pag 12 a d 17 h w w k wa t g th m g t g t wPh t gaphy: A Paq/A t v t

T a h wa du t d w th th a ta D ak a.

T AIC u th w h t a k w dg th pa t h p : Adv a y P j t, A aPapa G va XXIII, Ayu tam t d X x th ugh th h p Paz D g dad, th

g v m t th ugh th h p Mu dubat, B d jk D , th Cata a G v m th p S d pau, C m t Cath qu C t La Fa m Et P u L D v p mm t (CCFD)

G b d E pa a - M t d A u t Ext y d C p a th ugh thI t -Chu h O ga at D v pm t C p at (ICCO), th I h G v m

h p Ch t a A d a d Ju ta Ca t a-La Ma ha th ugh th h p ACSUR La

S m ght v d t T A t at v I mat C t (AIC).T w k d u d a C at v C mm Att but -N mm

L (USév3.0): http:// at v mm . g/ /by- /3.0/

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Economy of the Occupation4 |

B S111 Ma St t (Suq A hab)B t Sah u , Pa t

.: +972.2.277.5444Fax: +972.2.277.5445

J4 Sh mt Hama ka St tPOB 31417 J u a m 91313

.: +972.2.624.1159Fax: +972.2.625.3151

K Lhttp://www.kav a v d. g. /

T A I C (AIC)http://www.a t at v w . g/

H8 H tz St t, F 2, Hada 224

.: +972.4.864.4238Fax: +972.4.864.4238

A17 P tz St t

.: +972.3.688.3766Fax: +972.3.688.3537

J6 Ya a St t.: +972.2.624.2801

Fax: +972.2.623.2868

AF th a ta w v d d t g th a h, w w u d k

tha k A u ta t Id Ca aa , P Ema u Fa ju , th taff a d v u Kav Laoveda d U Yak b K , wh a t d at g a d h k

data. Ta k a g t Ya R a gu t d t g.

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Israel Owes Billions of Shekels to Palestinian Workers | 5

C1. Summa y: Ex v d du t m Pa t a w k

2. D du t Nat a I u a I t tut

3. “Equa at tax”

4. D du t thHistadrut, P v d t Fu d

5. F a g Fu d P m t th C t u t S t

6. D du t P Fu d a d S k Pay

7. D du t W k D ab ty

8. Emp y Paym t t D pa tm t

Paym t a d W k ’ E j ym t R ght

9. Fa D um tat

10. Pa am ta y Qu t t M t y F a

11. R p th M t y

F a ,Histadrut a d C t a t ’ U

12. Ca u at th D bt

13. M th d gy

6

8

9

11

13

15

17

18

19

19

20

22

24

A

14. A x 1: E t mat th Numb Pa t aW k : M th y, Qua t y a d Av ag M th y Sa a y

15. A x 2: Y a y E t mat Ex v

D du t (W th ut I t t, 2008 P ), Pa t A

16. A x 3:E t mat Y a y Ex v

D du t (W th ut I t t, 2008 P ), Pa t B

17. A x 4: ab I t t18. A x 5: Rat D du t Nat a I u a

19. B b g aphy

27

29

31

3335

36

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Economy of the Occupation6 |

1. S

I th p t w p p a ap-p x mat a u at am u tthat th D pa tm t Paym t

d du t d m th a a Pa t -a w k m th O up d Pa -

t a t (OP ) wh wmp y d I a , wh h w

d du t d th m m th mp y-, m 1970-2009. T am u t

m y w ma y d du t d d t a va u a ght

th w k , but p a t a ma- j ty th m y wa t a dt th I a M t y F a

a d th Histadrut (th I a adU F d at ). T a u at

h w that v d ad , th Stat I a a umu at d a d bt b

h k t th Pa t a wT d bt mu t b pa d t th w kth m v t th b aa da w th th u a d d ta

t th D pa tm t PaymT d a d g a tab h

th D pa tm t Paym t wa tqua z th a a y d t

t a w k m th OPth I a w k . T D pm t wa tab h d 1970 a d b

g d, u t 2009, t th M tI du t y, ad a d Lab u (t day

“A Palestinian worker will receive for his work in Israel a gross and netsalary equivalent to the salary of every other worker in Israel with identi-cal personal and professional characteristics. A Palestinian worker is eli- gible for social conditions to which every other worker with identical char-acteristics is eligible in Israel, in accordance with the law, expansion ordersand group agreements. Te Department of Payments of the Support Unitis responsible for implementation of the aforementioned decision.”

(Website of the Ministry of Industry, rade and Labour, 2010)

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Israel Owes Billions of Shekels to Palestinian Workers | 7

atta h d t th M t y I t ,a t Pa t a w k w d da “ g w k ”). T tat b -gat d mp y ( a da w thd 1/b th M t a C m-m tt S u ty, 1970) t t a -

th g a a y th Pa t a

w k t th D pa tm t Pay-m t .T D pa tm t Paym t

upp d t d du t m th a ava u tax a d d du t -

a b t qua t th I aw k . I uph d g t b gatt d du t m y m th Pa t awag , th D pa tm t wa t g t-

y m t u u . H w v , uph d gt b gat t p v d w k w th

v a d b t x ha g th d du t , th D pa tm t wa

g g t. Tu , xamp , 92% th m y upp d y d du t d

Nat a I u a d ag m t , d ab ty, u mp ym t

h d paym t wa t a d tM t y F a . M y wa t

d t Nat a I u a u a a w k a

a d ba k upt y th mp y . T

th m t ath g xamp , but th y , u th t u dp t t a g v m t dth d a d g a wh h “pt ” Pa t a w k .

W mad th a u a-t Pa t a w

wh ma y w k I a . w g up

Pa t a w k ap m t y ab t th p t: Pa tw k th I a t m t th OP a d

ma Pa t a w k , a a w t t a d th

th D pa tm t Paym t . S paat a h h u d b u d ta

g th g up .A a t du t t th d ta

data w t d, b w a tabg v a am u t d du t d

th w k wh h w t tut th m a qu d by th g

Te Palestinian workers and theiremployers allocated money for NationalInsurance, but the workers were insuredonly against bankruptcy of theiremployers and work accidents.

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Economy of the Occupation8 |

ma dat d ght ( x v d du -t ). T mat p ta g t

v a t a au u ava ab ,a w b d ta d b w, a d th a -

u at th pa t a a d mu t

b a a m mum t mat . Tam u t a qu t d 2008 p

. . adapt d a d g t th u p d x. W h a y a y

t 5%.

Excessive Deductions - (in millions of NIS)

D du t Nat a I u a (t a dt th M t y F a ) 1,354.0“Equa zat tax” ( m 1995) 941.0O ga g –Histadrut 132.0P v d t u d 152.0P m t t u t t ( m 1990) 219.0S k pay d du t 275.0W k d ab ty d du t 8.4S I ’ 3,082.0D I 8,350.0

. Deductions for the Natio-nal Insurance Institute

A d g t th data thPaym t D pa tm t t ,

y 7.63% th paym t Nat a I u a (d du t dm mp y ’ wag a d t dm th mp y ) a v d at t

ga d t at . T w k pa d d ag paym t , u mp ym t

u a , g a d ab ty apaym t but m w k ’ t t

, a a y p a d va u pt t b m appa t that th

v d y a ma pa t thv wh h th y pa d: w k d t u a a d ba k upt y

mp y (D pa tm t Paym1992;Kav Laoved, 2000). 92.37% wad t y t a d m th Dm t Paym t t th M t y

E D P W

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Israel Owes Billions of Shekels to Palestinian Workers | 9

F a . O th pay p p du dby th D pa tm t th w k

w tt that a th m y wat a d t Nat a I u a – a

a tat m t ga t m , a d d -pt mm pa a .I u a u at w add d t -

g th th d du t m th w k- a d th mp y , d du tt d d t a a th ght

m Nat a I u a that th yd d t v .

I a a u a u at d du t-g 7.63% th d du t Na-

t a I u a du g th y a1970-1994 (th p tag d du -t Nat a I u a ha g d

v th y a a th y app a tha x, add t t th Nat a I -

u a I t tut , 2009), th am u t x v d du t Nat a

I u a a h NIS 1.354 b - ( 2008 p ).

T I a H gh C u t g z dthat th d du t ga th

u g t gav th U F wG w ’ p t t . I 1991 th U

ubm tt d a p t t t th H ghC u t, d ma d g a tu thm d du t d m th mp ya d w k a paym t Nat a

I u a , a th w k d d ttua y v th ght whpa d. M . Da Ab aham, h ad th U F w G w , that a t th H gh C u t u g, tD pa tm t Paym t wa t tu t th mp y a d th

w k app x mat y NIS 4.7 m ( 1991 p ).F m th am u t a u at d a

v d du t Nat aa w du d th mp atwh h wa a ady awa d d t thPa t a w k th a

t d H gh C u t u g.W w d a w th th d du t

Nat a I u a m 1 th xt t , u d “ qua

at tax.”

. “Equalisation ax”

“Equa at tax” th t t g 1993 t th u p u t

Nat a I u a (Stat I1994). T d ff b tw thm y t d m th Pa tw k a d th mp y , a dm y that wa a t t aNat a I u a , wa d d a

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Economy of the Occupation10 |

p a x , th g a wh h wat qua z th t mp y gPa t a a d I a , a d a u ht p v d a t v p gI a w k (M t y I du t y,

ad a d Lab u , 2003).I 1994, w g th d u

p d g th O Ag m t , t b -am k w that I a t d d tt a pa t th qua zat taxm t th Pa t a Auth -

ty – t ad g v g th w kth u ght wh h th mw d du t d.Kav Laoved qu t d

a ju t aga t th t p ( mth D t t C u t J u a m). I

p , I a tat p tat v(Dav d B d t, th H ad th Bud-g t D pa tm t, a d Aha Ba az-a , th a d u t H ad thPaym t D pa tm t) a u dt th u t that th m y w u d bd p t d a ba k a u t I au t th Pa t a Auth ty tab-

h d a u d th b t w k- mp y d I a a d th

am y m mb .A au th p t wa put

th m a x t th OA d , a d at a h d thAg m t th Gaza St p a d

J h A a (Stat I a , 1O th am a t wa dm d that tw -th d th t w u d b d du t d xp

th D pa tm t Paym t , a h a th u a paym t

upat a h a th v . O

ma g -th d w u d appab d p t d a u d th b th w k .F m 1995-2003 th m y wa

d p t d a p m d a mma ba k a u t. A d g t a

p t th Stat C mpt , du

th p d NIS 67 m a uat d th u d. A d g t a u at , NIS 627 m

2003 p ) w t d Pa t a du g th am

w -th d – a hug hu k t wght – a d g y g w t a m

90% th qua zat tax Ev w a um z t t

u d’ m y, up u t 2003 NIS 560m th m tp a d t th budg t th F aM t y (Stat C mpt , 2005

I 2003, d p t th xp t at a mm tm t that wa u

th a t d aw, th g v m I a (u d auth ty th

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Israel Owes Billions of Shekels to Palestinian Workers | 11

a g m t Law) d d d t t ath qua zat tax m t thC v Adm t at th I am ta y. dat , a a a w k w,th th p a th tw t g

t y th qua zat tax (Stat I a , 2002).

W th th pt m t a umptthat th am u t NIS 67 m t d p t d th Pa t -

a w k a d w b t a d

t th m day, w ubt a t d tham u t m u a u at .

T qua zat tax m g-y m a t t b th gap b tw th

Nat a I u a paym t takm th w k a d mp y a d

th am u t t a d p a t tth Nat a I u a . I w w u dmak th a u at th y a1995-2009 a d g t th m th du d t a u at th x v d du -t Nat a I u a th

y a 1970-1994, w w u d a h tham u t NIS 804 m x

v d du t ( 2008 p ).H w v , m p t th

pa tm t Paym t t b m pa t that th qua zat tax tak

m th Pa t a w k

th mp y wa h gh thaam u t Nat a I u a takm th I a w k . A d

a u at ba d th tat( t a u at

th d bt), th am u t NIS 1.078 b ( 2008

p ) a h d.S w d t k w

xa t y what w th x-v d du t

Pa t a w k th qua zat tax 1995-2009, wt k a av ag th tw t ma

t d. Tu w v a t mat NIS 941 m ( 2008 p

. Deductions for theHistadrut , Provident Fund

I a 1970 g v m t d , whtab h d th D pa tm t Pa

m t , thHistadrut a v d a

Since 1994 Israel has transferred moneybelonging to the Palestinian workers to a fund established for them, but a majorityof the money disappeared from the fund.

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Economy of the Occupation12 |

p th p . Pa t a w kw d t pay “ ga z g ”t th Histadrut at a v 0.7% th a a . THistadrut a at dt th w k d v dua a ta ,but d th ght v -à-v th M t y F a a d D -

pa tm t Paym t . T ugh tt tut , thHistadrut v d -d th ght w k wh a t

t z I a t b m m mb(G b g, 2007).

O 6 Augu t 2008, thHistadrut g d a ag m t w th th Pa t

G a F d at ad U

(PGF U). T Histadrut t a dt th PGF U th am u t US$3.6 m (NIS 12.76 m ,

d g t th x ha g at dat th ag m t), a am um a t t p t th ga z

t d 1993. A

t u a u at , m 1993-2th Histadrut t d ga z g m th Pa t a w k

th am u t NIS 66.2 m( t ud g t t): m v t m th am u t tu d by tHistadrut. T ag m t add t a

d t m d that ha th ga

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Israel Owes Billions of Shekels to Palestinian Workers | 13

t d by thHistadrut a tg g w u d b t a d t th

PGF U (a d g t a d um t th I t at a ad U C -

d at , 2009).Ba d a a u at 0.7% th a a y Pa t a w k

a ga z g thHistadrut u t May 2005 (wh th wa d t 0.8%, I a K t, 2005)

w a h d a am u t NIS 132m ( 2008 p ) wh h wad du t d m 1970-2009 a ga z-

g . A t d du t g th m y

that wa t a d t th PGF U,a d ha th 2009, x vd du t th am u t NIS 116m ma .

Add t a y, th D pa tm t d -du t d a add t a 2.74% aP v d t Fu d a d h a th tax, wh hw ud d th am pa kag

d du t a ga z g th Histadrut. T h a th tax v dh a th u a th w k thOP . It u k w t u wh thm y d du t d th p v d t

u d w t a d what auth ty twa d du t d (D pa tm t Pay-m t , 1992).

O th ba a u a th

D pa tm t Paym t , w k wthat th P v d t Fu d, NIS0.54 w tak m v y w kth t u t t a h dw k at a t u t 1993, . . 3.1%th a a y. F m h w a uthat m 1970-1993, NIS 152 m -

( 2008 p ) w tak th m th P v d t Fu d. W dt k w th d du t t

a t 1993, but w d k w that thw k d d t v a P vFu d.

U d th a d t

t a a “da y” “t mpw k , a maj ty th b tt m d th t v ba gag m t thHistadrut w th th

mp y w t m Paa w k , ud g m

u ty, am y upk p, g a t m g w k, a 13th a a y th ag -

u tu a t a d m .

. Financing the Fundfor the Promotion of theConstruction Sector

I 1990 th Histadrut g d w th thC t a t ’ A at a am

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Economy of the Occupation14 |

m t t th t v ba ga gag m t th t u t t .T mp y mm tt d th m vt t a g 2% th w k ’ a -a t th “ u d p m t g a dd v p g th t u t t I a ,” ma ag d by a a at -

tab h d xp y th pu p .T g a th a at t p -m t th w k I a , a d pa t u-

a y w mm g a t , th t u -t t .

It u u d ta d g that tha at wa tab h d a pa t

th ff t t ab b mm g a t mth m S v t U . T Pa -t a w k , wh at th t m p-

t d a maj ty t u tw k I a , a k d a y p -tat th d a d w qu d t ub d z th t a -

g w k m a t t p a th m.A ady 2000 th ag m t

wa a t d a d da y w k w x-mpt d m th d du t , but th

D pa tm t Paym t t u dt d du t th am u t m a Pa -

t a w k u t Augu t 2004,wh a w t v ag m t wa

g d (M t y ad , I du t ya d Lab u , 2000; C t a t ’ A -

at , 2006). T w ag md t m d a d du t v

th u d.T C t a t ’ A at

t u d t d ma d m th M I du t y, ad a d Lab u bud-

g t t t a I a w k , wh

th u a d h k a umu a u d t d d p y pu p (a 2008, a d g t a a d th u d, tta NIS 34 m ). g th wth d ma d , th C t a t ’ A

at ha b ght g

a v - d g a p v d qu ta m g a t w k

u h that th t a g I a w t u t b am a ga g ag .

I , what d d th Pa tw k a ? I add t t t a g I a w k , x

th u d ud d p a da h ( t u a th w

pub h d), u ta t , pub t th C t a t ’ At a g Histadrut a t v t a d -

a a g a t v y d y aam I a w k

amp y m u th m Pa t a w k th

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Israel Owes Billions of Shekels to Palestinian Workers | 15

p tab t v I a ddu g Op at Ca t L ad, wh hwa du t d th Gaza St p D mb 2008-Ja ua y 2009 (C -t a t ’ A at , 2009).

I add t t th d du t th u d th p m t th

t u t t , 0.3% wa d -du t d m th w k ’ a a m a a d g a t t th h d

w k ( 1990), wh h th Pa -t a w k d d t j y.A d g t u a u at , th

t ta am u t ( 2008 p ) wh h

wa t a d m th a a y

Pa t a w k m 1990-2009t th u d th p m t th t u t t ( w d byth U C t u t W k

th Histadrut a d th C t a -t ’ A at ) m a a dg a t t th h d w kwa NIS 219 m .

. Deductions forPension Funds and Sick Pay

D du t p u d k b t a ud d

t v ba ga g ag mth t u t a d ag u tu a

t . T d ffi u ty w th th d dut th a k a Paa w k t th v , t

th y a t t d.O y ab ut 1,000 Pa t a

w k t day v a pth Paym t D pa tm t a t th

a h d th ag t m t C mm tt t Exam-

P b m Fg W k , K -t, 2007). A maj ty w k w thd w

th m y m thp u d du gp d u mp y

m t, u a d g , ut t u t th I a y t m that t w

d d p v d th m m th y pam t wh th t m am . Ea y wd awa p u d u t m t h gh p a t , a d mth m a d th ugh th m d at

att y , wh a ha g h gh

Palestinian workers in the constructionsector were forced to pay 2% of their salariesto a fund to promote Israeli workers to workin construction and to replace them.

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Economy of the Occupation16 |

T Paym t D pa tm t up-p d t ma ag th u d ju t k

th p u d , but t t -u t a w w k t w thd aw th

p m y, t av t tth d t v th D pa tm t

th Cap ta Ma k t th M t y F a . T Paym t D pa t-

m t a d t b th t updatth w k m mb ab ut th tu-at th a u t a h y a (KavLaoved, 2000).

Health Insurance

F m a w k a t , 2.5% th a a a d du t d k

day u a . O y a ma p t-ag th d du t t a dt th Pa t a w k a pay-m t k day . T t m a d -

t qu d t v k pay m

th D pa tm t Paym t (whud th add t a

day ) u t um u Paa g v g up ah ad t m

att mpt t p v tht t m t (Kav

Laoved, 1993). Ou

a u at d mt at that 1.56% th w k ’ a aw d du t d day u a that wa

t pa d t th m.T x v t

d t th M t y Ft ad av g t th p

u d th w k . M u y, 1 Augu t 2004, th

t v ba ga g ag m t t u t t d t m

k day u a w b takm v t a w k . A th D p

m t Paym t d a Pat a w k a “da y” “t

a y,” t g ha ju t atd du t k day u a m

a a . H w v , v a t gu t 2004 th D pa tm t t ut d du t 2.5% m th w k

k day .A t mat th x v

Te Israeli occupation policies rendered itdifficult for the Palestinian workers to realizetheir rights to sick day pay, worker disabilityand savings in a pension fund.

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Israel Owes Billions of Shekels to Palestinian Workers | 17

du t th a t app x mat -y NIS 275 m ( 2008 p ).

. Deductions forWorker Disability

T t v ba ga g ag m t th t u t t d t m

that 1.3% w k ’ a a w bd du t d w k ’ d ab ty p -

. T ght t p a paym t th a d ab ty a z d t

a xt t by Pa t a w k-

. Tu , xamp , 1992 (thh ght mp ym t Pa tw k th t u t 76.67% th um d du t d by thD pa tm t Paym t dab ty p wa t at th M t y F a (KavLaoved, 1993).

Ou a u at th y1970-2009 Pa t a tt w k (a av ag 54%a Pa t a w k ) a h

v d du t ( 2008 p ) am u t NIS 8.36 m .

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Economy of the Occupation18 |

. Employer Deductions tothe Department of Paymentsand Workers’ Enjoymentof Rights

T w g tab ba d -u a that th D pa tm t Pay-

m t d t mp y t updat th m ha g mad tth qu d paym t . T tabh gh ght th gap b tw what wd du t d m th mp y awhat v d p a tth w k .

E P R A t S k day u a O y a t mp a

bu au at p duVa at u a A w k v 1

w th add t tNat a I u a O y u a w

d t a d mp y ba k-upt y

S v a pay O y 72% a a y, a Ja y 2005Equa at tax —H day paym t R v d y u t 1990Mutua u a paym t ( a

d ath)F w v d

S h a h p h gh h tud —O ga g L m t d d v dua a

Ag u tu a t R hab tat a d a d t u d —C t u t t C mp h v p O d ag p

a umu at d y a g bFu v a mp at —B t w k t y —D ab ty u a F w v dA at p m t -

t u t t—

S m a a d t u g du atp g amm

C t u g du at u d —

C th g —G a t ab t m —S ty paym t —Va at pay —Ov t m - at d Exp —

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Israel Owes Billions of Shekels to Palestinian Workers | 19

Pa t a w k I a : qua t y tat tPa t a w k I a : m th y tat t

. False Documentation

T h gh t mp y g Pa t -a w k w t a d by u-

m u mp y t th w k byp t g w w k g day . F th

ma g day th mp y pa d thw k a h, w th p t tth auth t . A a u t, paym t

t w k th a ght a -u at d a d g t w k g dayw d a t a y du d, ud g

v a pay, p , d ab ty pay-m t a d m (Kav Laoved, 2000).

. Parliamentary Questionto the Ministry of Finance

I Ma h 2009, K t M mbD v Ha ubm tt d a pa am t

y qu t t th g v m t t p t m

a ght m Pa

t a w k th y a1994-2009. T M t y F a p d d

Ju y that th y a , NI1.2 b wa d du t d,

wh h NIS 1.1 b wa t a th a zat w k ’

T p th M t y

a (M t F a , 2 t d ta d, d t ud ju tm t th um pd x a d t t, a d d t t tdata w u d.

Te denition of the Palestinian workers as

“temporary workers,” with no relation to theactual length of their employment, harmedtheir employment conditions.

120,000

100,000

80,000

60,000

40,000

20,000

0

Graph : Palestinian Workers in Israel

1 9 6 7

1 9 6 8

1 9 6 9

1 9 7 0

1 9 7 1

1 9 7 2

1 9 7 3

1 9 7 4

1 9 7 5

1 9 7 6

1 9 7 7

1 9 7 8

1 9 7 9

1 9 8 0

1 9 8 1

1 9 8 2

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1 9 8 7

1 9 8 8

1 9 8 9

1 9 9 0

1 9 9 1

1 9 9 2

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1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

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Economy of the Occupation20 |

. Responses of the Ministryof Finance, Histadrut andthe Contractors’ Union

R p th M t y F a

“T t t th p t KavLaoved g th M t y F a a t a d m ad g,p ma y th u am g tth th va u auth t th g v m t.”

T M t y F a -p b tw t p at d t th

m y Pa t a w k . O ,t a m tax d du t d m

th w k t th Pa t a th ty ( a da w th th PA d , g d 1995) a d th

d, ma ag m t a d a gua d g th p u d th w k

v tm t h u (Ga , M aa d P ag t), wh h w t da pub t d pub h d by th

u ta t G a .day, th th b d ma ag

app x mat y NIS 768 m th w k v g th Pa

a Auth ty. Ma ag m t m u h a th t th

b ty th D pa tm t Cap ta Ma k t, wh h up v

t tut a b d that ma a

Graph : Excessive Collection from Palestinian Workers Prices, Millions of NIS

1 9 7 0

1 9 7 1

9 1 7 2

1 9 7 3

1 9 7 4

1 9 7 5

1 9 7 6

1 9 7 7

1 9 7 8

1 9 7 9

1 9 8 0

1 9 8 1

1 9 8 2

1 9 8 3

1 9 8 4

1 9 8 5

1 9 8 6

1 9 8 7

1 9 8 8

1 9 8 9

1 9 9 0

1 9 9 1

1 9 9 2

1 9 9 3

1 9 9 4

1 9 9 5

1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

Nat a I u aHistadrutBu d g Fu dEqua zat ax

S k payD ab ty u aS m a

165

140

115

90

65

40

15

-10

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Israel Owes Billions of Shekels to Palestinian Workers | 21

th p u d I a t -z . T a av g v tm th u a da w th th -v tm t u d d th t d .T up v th v tm th u du t d th ugh th S -

u t ’ Auth ty. P y g

p av g g w k- t at d by th M t y I t .T m y a z g th -a ght ( t p h a th a d

w a ) t d du t d by th M -t y F a a d ma ag d by

th D pa tm t Paym t thM t y I t .

Offi th Sp k p thHistadrut

“R : Y u L tt m 20.12.2009

1. F m y u tt t app a that t y u t t t pub h a t -

d t u a d a p t a k g a y u dat . A th ugh t ap-

p a that th a p t wh hy u u w p d t -m d w th t t a ta d a ty, w u d t app p at

t mak a h t t ttat d y u tt .

2. O 24 Ju 2008 a ag m twa g d b tw thHistadrut a d th Pa t G a F dt ad U (PGF U)

T t p th ag m t wau a d a a u t g b twth Histadrut a d PGF U -

g m mb h p a d zat a ha d g d du

m Pa t a w k , d t t u ag m t ga

th t p m mb h p ha d g that w b d d

d m Pa t a w kt a d t thHistadrut th

utu , pt pu v m thHistadrut.

3. T a m t d ag m t a g d a th a u t g b tw

th Pa t a w k a d thHis-tadrut a d p t a u a d a

ut d aym t a y ta d/ p t t , u t y x

th utu , ga d g th t

4. A t d ab v , th ag ma ga d th t u d p

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Economy of the Occupation22 |

p a u v ,wh h thHistadrut w p v d tth Pa t a w k d tp t t a d p v th ght ;th u at d t th qu t

m mb h p th Pa t aw k thHistadrut.

5. It app p at t mpha thatb tw th tw d th d da d d x t u p at

u d d g t at , d a gua d th tt g m t g a d j t p j t th p m t

th ght Pa t a w k ,a d a d at ty b -tw th tw p p .

6. It w b a d that th a -m t d ag m t wa g dat th t at v th u tCha p thHistadrut, M .O E , a d w th -t t a y t d d p u .T a m t d ag m twa g d u d th p -

h p th I t at a adU C d at (h -

th: I UC), th G a S -ta y wh h v g d

th ag m t.”

R p thC t a t ’ A at

O a P m th C t a t ’ at t d that “w a u

th t t a d I d ’t u dta d why th p th C

t a t ’ A at d d.”

. Calculation of the Debt

I ght th data w t d, p b t a u at th am u t

I a t m Pa t a w th am u t t d ab v mu t b

add d t t, a d th w ua y a y t t at 5%. T

a m ma d t m at thp a g a a u ata d utu t gat h gh

k y t b u d.T t t w h m a t t a a ab tu th

had v t d th m y mth m av g , th a umu atp p ty ( u h a a apa tm t)

v g d bt . I th t d adth I a upat , th ma kt t at w ub ta t a y htha th av ag t t at

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Israel Owes Billions of Shekels to Palestinian Workers | 23

a t w d ad . A d g y, th -t a tab t t at th

t p d a a u h , k yt t t th t ta d bt t Pa t aw k d w wa d .

It u t ma y t b v thata 5% t t at a a av-

g h gh (at a t th

1990 ), a th ugh th matt bu d t v v a a av-

g but a m v tm t.It a t pat d that th Pa t aw k w u d t av th m -

y w d t th m, but w u d takadva tag t m -v tm t, u h a a qu g h u -

g pay g ff d bt . T av tm t that b g a av agtu av g xp d tu

mu h h gh tha 5%.T a u at d am u t d bt

w th ut t t NIS 3.082 ,a d w th t t th am u t a hNIS 8.350 . It mp ta t t

t that th a u at a u at

t 2009, 2008 p , a d d ud t a m t wh

mat t ava ab . T at th a k g.

Ca u at d du t qua zat tax: A d g t

p t th D pa tm t Pam t , 2009 0.72% wa d du t d

m mp y a d 0.61% m a a y w k Nat a a . Add t a y,4.71% wa t d

m th mp y- a d 6.39% m

th w k thqua zat tax. A

a , 12.43% wa t d (pa tm t Paym t , w b t th M t y I du t y, ada d Lab u , 2009a).

C d g that a m t a Pa t a w k m th Owh a mp y d I a d

v 2/3 th av ag a a ya upp d t pay Nat a I ua at a du d at 0.03% th w k a d 0.5% m th mp y , a d t ta 0.53% (w b tth M t y I du t y, ad aLab u , 2009b).*

It is possible to assume that if the workers wouldreceive their money on time, they could use it tocover debts, acquire property and obtain education.

* I a w k pay a du d paym t 3.85% m th mp y a d 3.5% m tt ta 7.35%, but t mu t b a d that Pa t a w k v u a a d mp y ba k upt y, u h that th m y t a d th m t Nat a I u a(Nat a I u a I t tut , 2009).

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Economy of the Occupation24 |

B g g Augu t 2009, th x-v d du t m Pa t a

w k , add t t th v y h ghd du t Nat a I u a ,

a h 11.9% th w k ’ a a y.I w a um th a u at thy a 1995-2009, w a h a x -

v d du t NIS 1,354 b .

. Methodology

Wh w b g t t mat th xt t t m Pa t a w k

mp y d I a , t b m athat th u dam ta m data

qu d th a u at a u -ava ab t th pub . T D pa t-m t Paym t d d t gu a ypub h th am u t ha g d mPa t a w k va u d du -t , a d 1995 th C t a Bu au

Stat t a d p t g tht y Pa t a t w k I a

a d th a a . F t w had ta u at a t mat g thumb Pa t a w k wh

w k d I a a h y a 1970,a d t at a t mat thav ag a a y.

Numb Pa t a w k

I a : I d t at a t th umb Pa t a w

wh w k d I a , w udata t d by th C t a Bu

Stat t m 1970-1995. Ta qua t y tat t a d y

t a t mat . I 1980 th y t

a u at wa a t d ud pa t-t m w k . I 1th tat t w updat d at th updat d p pu at u a

m 1987, y w k m th 15 a d ab v w g t d (

pa d t 14 a d ab v , a th pa t

T ha g th m th d gy th C t a Bu au Stat t dag th qua ty a d a u a y tdata. W u d a ffi t t mp at th ha g d t th data (C t a Bu

Stat t , va u y a ). T Mt y F a mad a t mat

th qua t y data g th t y Pa t a w k t

th y a 1990-2005 (M t yF a , 2005).

T D pa tm t Paym t t- upp d w data 1979-1

a d m 2000 u t Ju y 2009. Ttat t a d d t b

h gh t ava ab qua ty, a th y

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Israel Owes Billions of Shekels to Palestinian Workers | 25

t tat t a t mat but mp ta u t th wag Pa t aw k wh pa d th ugh th D -pa tm t Paym t (D pa tm t

Paym t , 1992; D pa tm t Paym t , 2009).

A t mat th umb

Pa t a w k u d d m th y a d t qua t y data ( a g-), a th ugh th y a wh h

th y qua t y data, a u at th m th y t mat v a a a-

t ffi t (d v by 1.73) ab t u t a u d t mat

th umb Pa t a w k th y a . It mp ta t t t

that a w t mat th umb Pa t a w k a u t a

w t mat th x v d du -t m th m.

Av ag a a y Pa t a w k-: I d t a u at th av ag

a a y Pa t a w k , w u dtat t th D pa tm t Pay-

m t m 1979-1991 (D pa tm t Paym t , 1991). I d t t -

mat th a a y b 1979, w u dth a a y 1979 a d adju t d t tth um p d x. I d t

t mat th a a y a t 1991, w u dth m mum wag (a th a av -

ag wag Pa t a w k ua y d d du g th 1980 u

t a h d th v m mum 1991). A t mat th av a

wag th Pa t a w kma d k d t th m mum wabut th wa a d t t th

a g u p m tat t y t I a t a w k , wh h mpa t

y th umb w k but ath umb w k day p m tt dth m. B g g 1994 th av a

a a y wa a u at d a d g

w k day a h m th, a d b g 2001 a d g t 18 w k day

a h m th. T y a t maa d w h p t pub h m a udata th utu a d wh th Dpa tm t Paym t w p v d

Adju tm t t th p d x: Wadju t d th y a y wag Pa

a w k t th um pd x. F th a u at w u dav ag d x v a h y a a

h d by Ba k I a (Ba k I2009). A at at th d th1970 a d du g th 1980 wa xt m y h gh, d t t a amat w at d du t th u y a y d x av ag . I d t

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Economy of the Occupation26 |

th d t t , th wag tat t th y a 1970-1995 w m th dby adju t g th a u at a h y a

at t th av ag a a y thy a 1970-2009. A t wa d , th a -

a y v d 1970-1995 wa p -t d th m th y a m v-

g av ag . D t t ma d

1981-1987, adju t g th av aga a y t th p d x, wh h w

t d by m th g th t mat ,w th ut mpa t g th t ta um

th a u at .Ca u at x v d du -

t : I d t m t th d t tt d th a k adju tm t t

th um p d x, th a u-at a h a t w mad

tw tag . I th t tag , w u at d a t mat th t ta y

wag th Pa t a w k a by d ub g th t mat

av ag m th y umb w k a t mat

th av ag

m th y wag a w k , t m12 m th . Ith d tag ,

w d ub d th t ta a a y by thp tag x v d duthat w a u at d th ba

th u .T u t at b t a t mat at a p gu . A w had d

th p tag xdu t y a w y a , wt xt ap at a d app y th a ut v g p d , ba d

mat g wh h th x t d x v d du tw xp a d a h ub-a t

Due to the lack of data, we used a quarterlyestimation for calculating the number of Palestinianworkers, which is liable to tilt the calculations of excessive deductions downwards.

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Israel Owes Billions of Shekels to Palestinian Workers | 27

A. Annex : Estimation for the Number of Palestinian Workers:

Monthly, Quarterly and Average Monthly Salary

T a u at wh h u t d th t mat b w a a m t d m th d gy t .

Y a Pa t a w k I a : t mat(m th y data)

Pa t a w k I a : t mat(qua t y data)

Av ag m th y a a y:t mat (2008 p )

1970 12,416 21,517 645.281971 20,372 35,304 645.281972 31,582 54,732 645.281973 36,946 64,028 645.281974 41,407 71,758 645.311975 39,960 69,251 645.341976 39,056 67,684 645.371977 37,911 65,699 645.401978 41,105 71,235 645.451979 47,475 77,398 645.911980 42,304 75,100 645.771981 42,888 75,800 747.111982 42,939 76,600 854.561983 44,113 84,300 905.171984 41,288 90,300 1,074.561985 39,525 89,200 861.641986 42,924 94,700 883.011987 45,872 108,900 802.87

1988 42,974 109,400 723.921989 35,089 104,900 759.291990 33,436 109,000 805.65

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Economy of the Occupation28 |

table continues from previous page

Y a Pa t a w k I a : t mat(m th y data)

Pa t a w k I a : t mat(qua t y data)

Av ag m th y a a y:t mat (2008 p )

1991 60,686 95,750 809.621992 67,155 116,380 841.191993 51,720 89,630 882.48

1994 42,556 73,750 732.081995 37,726 65,380 904.641996 31,956 55,380 1,146.631997 41,114 71,250 1,451.111998 56,694 98,250 1,654.051999 64,772 112,250 1,869.632000 31,657 54,862 2,035.52

2001 5,024 8,707 2,040.822002 8,295 14,374 2,156.892003 18,186 31,517 2,216.942004 10,247 17,758 2,207.762005 13,799 23,913 2,237.112006 15,344.50 26,592.04 2,367.402007 21,811.25 37,798.93 2,554.20

2008 23,800.58 41,246.45 2,671.542009 24,443.14 42,360.01 2,772.13

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Israel Owes Billions of Shekels to Palestinian Workers | 29

. Annex : Yearly Estimations of ExcessiveDeductions (Without Interest, in prices), Part a

T a u at wh h u t d th t mat b w a a m t d va t t .

Y a P v d t u d O ga g t th Histadrut

Nat a I u a Fu d thp m t th

t u t t1970 1,624,762.31 672,982.16 12,957,121.261971 2,665,891.89 1,104,221.63 22,716,057.721972 4,132,939.97 1,711,878.02 35,216,770.531973 4,834,921.03 2,002,641.00 46,678,257.911974 5,418,758.69 2,244,468.57 51,796,890.791975 5,229,742.05 2,166,177.23 49,490,215.26

1976 5,111,664.01 2,117,268.90 53,398,563.631977 4,962,003.11 2,055,278.83 53,393,585.951978 5,380,484.07 2,228,615.10 60,027,360.411979 6,218,738.65 2,575,823.04 58,702,373.361980 5,540,228.85 2,294,781.93 39,408,819.971981 6,498,057.87 2,691,518.03 60,937,435.811982 7,441,467.04 3,082,281.36 66,141,932.24

1983 8,097,713.80 3,354,101.04 26,262,127.091984 8,997,424.12 3,726,764.16 92,370,511.771985 6,906,595.48 2,860,735.71 74,992,143.371986 7,686,570.09 3,183,803.89 85,735,290.531987 7,468,962.79 3,093,670.20 64,967,074.151988 6,309,056.96 2,613,233.19 55,624,535.121989 5,403,101.58 2,237,983.35 47,637,074.09

1990 5,462,912.63 2,262,757.29 43,897,491.43 7,434,773.951991 9,963,989.20 4,127,118.76 64,930,389.33 13,560,533.061992 11,456,102.50 4,745,157.24 79,470,591.02 15,591,230.94

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Y a P v d t u d O ga g t th Histadrut

Nat a I u a Fu d thp m t th

t u t t1993 9,255,994.93 3,833,865.09 64,208,520.14 12,596,985.291994 2,616,998.74 43,423,274.07 8,598,710.141995 2,866,811.32 9,419,522.92

1996 3,077,904.34 10,113,114.271997 5,011,467.44 16,466,250.151998 7,877,010.07 25,881,604.531999 10,172,398.62 33,423,595.472000 5,412,844.04 17,785,058.992001 861,289.10 2,829,949.912002 1,502,790.69 4,937,740.85

2003 3,386,674.84 11,127,645.912004 1,900,359.31 4,886,638.242005 2,592,994.89 2,963,422.732006 3,051,432.79 3,487,351.762007 4,679,663.78 5,348,187.172008 5,341,076.49 6,104,087.422009 5,691,803.03 6,504,917.74

152,068,083.62 129,030,645.25 1,354,384,406.93 219,061,321.46

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. Annex : Estimations of Yearly ExcessiveDeductions (Without Interest, in Prices), Part b

T a u at wh h u t d th t mat b w a a m t d va t t .

Y a Equa at tax –t mat a d g t

Nat a I u aa u at

Equa at tax –t mat a d g t

data th M t y I du t y, ad

a d Lab u mAugu t 2009

S k pay W k d ab ty

1970 0.00 0.00 1,246,181.97 42,912.211971 0.00 0.00 2,044,721.49 70,409.871972 0.00 0.00 3,169,937.69 109,156.631973 0.00 0.00 3,708,352.53 127,696.911974 0.00 0.00 4,156,152.16 143,116.871975 0.00 0.00 4,011,177.65 138,124.681976 0.00 0.00 3,920,612.57 135,006.071977 0.00 0.00 3,805,823.64 131,053.321978 0.00 0.00 4,126,795.78 142,105.981979 0.00 0.00 4,769,731.52 164,245.441980 0.00 0.00 4,249,318.97 146,325.061981 0.00 0.00 4,983,967.51 171,622.641982 0.00 0.00 5,707,556.12 196,539.371983 0.00 0.00 6,210,893.06 213,871.751984 0.00 0.00 6,900,964.94 237,634.341985 0.00 0.00 5,297,313.16 182,412.681986 0.00 0.00 5,895,548.54 203,012.881987 0.00 0.00 5,728,645.18 197,265.581988 0.00 0.00 4,839,005.06 166,630.871989 0.00 0.00 4,144,143.26 142,703.341990 0.00 0.00 4,190,017.95 144,283.03

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Y a Equa at tax –t mat a d g t

Nat a I u aa u at

Equa at tax –t mat a d g t

data th M t y I du t y, ad

a d Lab u mAugu t 2009

S k pay W k d ab ty

1991 0.00 0.00 7,642,313.97 263,162.65

1992 0.00 0.00 8,786,755.03 302,571.421993 0.00 0.00 7,099,287.05 244,463.551994 0.00 0.00 4,845,977.83 166,870.971995 36,163,797.99 48,739,887.95 5,308,563.56 182,800.091996 38,437,683.91 52,328,770.85 5,699,451.06 196,260.281997 70,647,163.83 85,202,105.69 9,279,889.89 319,552.491998 111,043,008.48 133,920,424.14 14,586,104.18 502,271.68

1999 143,401,333.21 172,945,308.57 18,836,546.44 648,635.422000 76,305,410.44 92,026,081.33 10,023,131.41 318,335.872001 12,141,679.68 14,643,145.16 1,594,875.78 34,424.642002 22,175,871.53 25,549,588.64 2,782,764.20 69,616.692003 46,581,119.66 57,578,310.40 6,271,210.98 243,699.232004 26,137,987.48 32,308,823.13 2,827,915.65 120,360.582005 34,638,830.44 44,084,617.43 9,260,696.04 175,138.77

2006 34,123,358.98 51,878,716.68 10,897,974.26 210,784.832007 47,147,657.86 79,560,969.46 16,713,084.92 349,257.482008 51,768,818.11 90,805,930.43 19,075,273.18 386,094.392009 53,416,890.13 96,768,782.59 20,327,867.95 419,500.41

804,130,611.72 1,078,341,462.46 274,966,544.15 8,359,930.97

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. Annex : able of Interest

Y a I t t d btt Pa t a

A umu at dt t t 2009

ta x vd du tw th ut t t

ta x vd du t w th

t t1970 5.00% 6.70 16,543,959.91 110,923,134.341971 5.00% 6.39 28,601,302.61 182,632,968.311972 5.00% 6.08 44,340,682.84 269,653,736.48

1973 5.00% 5.79 57,351,869.39 332,171,482.551974 5.00% 5.52 63,759,387.07 351,697,758.931975 5.00% 5.25 61,035,436.86 320,640,388.261976 5.00% 5.00 64,683,115.19 323,621,820.761977 5.00% 4.76 64,347,744.86 306,613,237.871978 5.00% 4.54 71,905,361.34 326,309,369.601979 5.00% 4.32 72,430,912.01 313,042,227.91

1980 5.00% 4.12 51,639,474.78 212,555,080.281981 5.00% 3.92 75,282,601.86 295,117,521.181982 5.00% 3.73 82,569,776.14 308,270,652.761983 5.00% 3.56 44,138,706.74 156,942,794.051984 5.00% 3.39 112,233,299.33 380,061,787.721985 5.00% 3.23 90,239,200.41 291,030,440.151986 5.00% 3.07 102,704,225.93 315,458,469.78

1987 5.00% 2.93 81,455,617.89 238,278,919.441988 5.00% 2.79 69,552,461.19 193,770,554.961989 5.00% 2.65 59,565,005.62 158,043,692.721990 5.00% 2.53 63,392,236.28 160,189,023.861991 5.00% 2.41 100,487,506.97 241,835,167.021992 5.00% 2.29 120,352,408.14 275,849,924.051993 5.00% 2.18 97,239,116.04 212,260,795.40

1994 5.00% 2.08 59,651,831.75 124,011,873.981995 5.00% 1.98 60,229,540.86 119,250,371.181996 5.00% 1.89 64,469,957.33 121,567,719.751997 5.00% 1.80 109,001,794.73 195,751,562.62

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Y a I t t d btt Pa t a

A umu at dt t t 2009

ta x vd du tw th ut t t

ta x vd du t w th

t t1998 5.00% 1.71 171,328,706.77 293,030,230.361999 5.00% 1.63 221,254,496.84 360,400,261.052000 5.00% 1.55 117,705,116.20 182,599,267.93

2001 5.00% 1.48 18,712,951.85 27,647,552.582002 5.00% 1.41 33,155,642.52 46,653,318.602003 5.00% 1.34 73,108,945.99 97,972,979.812004 5.00% 1.28 38,958,679.08 49,722,243.812005 5.00% 1.22 54,570,059.28 66,330,248.122006 5.00% 1.16 61,084,500.46 70,712,944.842007 5.00% 1.10 91,113,030.41 100,452,116.03

2008 5.00% 1.05 90,176,916.67 94,685,762.512009 5.00% 1.00 105,597,581.33 105,597,581.333,065,971,161.51 8,333,356,982.88

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. Annex : Rates of Deduction for National Insurance Levelof deduction for National Insurance from total salary

Y a L v d du t

Nat aI u a mt ta a a y

1970 14.60%1971 15.60%1972 15.60%1973 17.68%1974 17.50%

1975 17.33%1976 19.13%1977 19.70%1978 20.43%1979 17.28%1980 13.02%1981 17.17%

1982 16.27%1983 5.94%1984 0.47%1985 17.39%1986 13.01%1987 11.69%1988 10.79%

1989 10.94%

Y a L v d du t

Nat aI u a mt ta a a y

1990 11.52%1991 10.71%1992 12.70%1993 12.70%1994 12.58%

1995 9.57%1996 9.47%1997 10.69%1998 10.69%1999 10.69%2000 10.69%2001 10.69%

2002 11.19%2003 10.43%2004 10.43%2005 10.13%2006 8.48%2007 7.64%2008 7.35%

2009 7.12%

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Te Economy of the Occupation, pub h d m th yby th A t at v I mat C t (AIC), ffa w app a h t th m tuat thO up d Pa t a t (OP ) a d I a .

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w m tuat . Ava ab pub at

a p ad , uffi t, t b a d a d a tt t y k ty, p t a d th m

th OP a d I a . T d mp w g tat affa mak t a th m t a t ff a t at

ad g th m a ty th upat .T pub at t u h va u u u h

a at , d bt, t ad , mp ym t, p v ty a dap ta , a d d m t at th u th

u th da y v Pa t a a d I aT a m t ha awa a d t t but ta m m d t ugg a ju t a d a jup a Pa t a a d I a .

Sh H v

Economy of the Occupation

P AIC