Union Opposes Proposed Privatization in Railway and Aviation

The Histadrut labor federation has sent two letters of objection to the draft Arrangements Law for 2026 to Finance Minister Bezalel Smotrich and Transportation and Road Safety Minister Miri Regev. The letters, sent by the chairman of the Transportation Workers Union, Eyal Yadin, outline the union's position on clauses in the Arrangements Law relating to the creeping operational privatization of Israel Railways and the establishment of new airports to be operated by private entities.

In the first document, Yadin emphasized that the proposal to privatize key parts of Israel Railways is based on erroneous data and ignores the fact that in the past decade there has been an increase in the number of passengers and in accuracy and reliability metrics. It was also highlighted that the previous attempt at privatization in the railway sector in Israel - as well as international examples - ended in failure, an increase in malfunctions, and high budgetary costs for the state. The Histadrut stressed that such a move could severely harm thousands of workers, jeopardize passenger safety, and lead to an increase in service prices.

In the second letter, Yadin warned against the intention to transfer the operation of supplementary airports to private hands. According to the union, this involves critical national infrastructure that cannot be run according to the profit considerations of a private franchisee. Yadin added that the privatization of airports could harm workers' rights and job security, the state's supervisory ability, and the service to residents of the periphery. Moreover, the move could set a dangerous precedent for the privatization of additional vital infrastructures.

The real threat to the employment of thousands of workers in Israel is just part of the damage against which the union is warning. The two solutions proposed in the Arrangements Law could harm the quality of service to the public and the ability of the State of Israel to maintain stable and safe national infrastructures. In light of this, the Histadrut is calling on the government to halt the processes and open a professional dialogue.

Eyal Yadin, Chairman of the Transportation Workers Union, said: "The accumulated experience, in Israel and the world, teaches that the privatization of national infrastructures is not the solution to deep problems, but a recipe for harming the public. Israel Railways and the airports are strategic infrastructure assets designed to serve all citizens of the state, not to become a source of profit for private companies. Our responsibility is to warn in time, so that we do not find ourselves paying the price in safety, service availability, and thousands of workers who will lose their job security. This is a moment when the state needs to choose to strengthen public service and not weaken it."