SPLIT CORPORATISM IN ISRAEL SUNY Series in Israeli Studies Russell Stone, Editor A publication from the Center for the Study and Documentation of Israeli Society, The Hebrew University of Jerusalem SPLIT CORPORATISM IN ISRAEL LEV LUIS GRINBERG STATE UNIVERSITY OF NEW YORK PRESS Published by State University of New York Press, Albany © 1991 State University of New York All rights reserved Printed in the United States of America No part of this book may be used or reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles and reviews. For information, address State University of New York Press, State University Plaza, Albany, N.Y., 12246 Production by E. Moore Marketing by Fran Keneston Library of Congress Cataloging-in-Publication Data Grinberg, Lev Luis, 1953- Split corporatism in Israel/Lev Luis Grinberg. p. cm. - (SUNY series in Israeli studies) Includes bibliographical references and index. ISBN 0-7914-0705-5 (alk. paper). - ISBN 0-7914-0706-3 (pbk. alk. paper) 1. Histadrut ha-kelalit shel ha-'ovdim be-Erets-Yisra'el. 2. Trade-unions-Israel. 3. Industrial relations-IsraeL I. Title. II. Series. HD8660.A5H583 1991 331.88'095694-dc20 90-45047 CIP 10 9 8 7 6 5 4 3 2 1 To Yael, Michal, and Jonathan CONTENTS Acknowledgments ix Prologue 1 1. Corporatism and Dualism 19 2. Historical Background 38 3. The State's Failure to Create Homogenic Corporatism 75 4. The Dynamics of Split Corporatism: Government versus Private Sector Corporatism 98 5. The Legitimation of the Histadrut Leadership 116 6. Disinflation and the Problem of State Autonomy 134 Epilogue 157 Appendix of Sources 173 Notes 175 Glossary 185 Bibliography 189 Index 197 vii ACKNOWLEDGMENTS I would like to thank the Sapir Center for its financial support for this research and Michael Shalev for allowing me to use material collect ed in a joint study. Michael Shalev deserves my special gratitude for his friendly advice, comments, and encouragement throughout all stages of my research. I also thank Yonatan Shapiro, Naomi Chazan, Yoav Peled, Nitza Berkovitz, and Ronen Shamir for their useful comments, and Jon Simons for his close work with me in writing the book in English. Special thanks are due to Baruch Kimmerling, without whose prodding and encouragement this book would not have been written. ix