Since October 7, the entire Israeli economy has suffered, and it is getting worse. While some industries, such as hi-tech, which operates remotely, are able to deal with the situation better, those that depend on the physical presence of their workers face bigger problems.
One industry that has suffered is the cleaning industry, which is currently experiencing a manpower shortage. Since October 7, the number of workers has fallen to around 45,000.
This is due, in part, to a sharp decline in the willingness to hire Arab Israelis, who make up about 22% of the workers in the industry. And while the Israeli government, and the Finance Ministry in particular, remain undecided on the issue, there is potential for serious damage to public health in thye country.
Lack of employees in the cleaning industry during war
In exchanges of letters and discussions among the Knesset committees, government ministers demanded that the employment of Israeli workers in the cleaning industry be exhausted before considering the absorption of foreign workers into the industry as a first step to the crisis. However, with a minimum wage of NIS 30.60, is it any wonder that about half of those employed are new immigrants who work in cleaning only because of integration difficulties and a lack of occupational choice?
So where lies the solution? The answer is with the largest employer – the public sector, government ministries, and local authorities. While in the private sector, cleaning workers’ salaries are higher than the minimum wage, such salaries in the public sector are determined by the state as being the minimum wage.
Technically, salaries in the public sector aren’t determined by the state, however, because it is the country’s largest employer, it can set the obligatory public tenders to the minimum wage so no one can beat it. Consequently, while the state could pay more, it uses its power not to do so.
Thus, the salaries of the majority of the cleaning workers in Israel (many of whom already come from low socioeconomic backgrounds) are at minimum wage, and there is no incentive or competition in the market that would cause the state to implement a wage increase. Thus, supply in the industry is decreasing as the labor shortage increases, and with it, the damage to public health in Israel.
On October 19, Finance Minister Bezalel Smotrich stated that “the Israeli economy is strong and can support the war efforts, the military, and civilians as much as will be required.” He further added, “We have money, and we will use it responsibly for whatever is necessary and with a generous hand. We have stopped everything that is not important in the budget, and we are using everything for the needs of the war and to support the economy.”
However, even though it sounds like the Israeli government’s money tree is blooming, the finance minister treats it as if it were the forbidden fruit and expects the line in the employment office to fill up by itself with people eager to work as cleaners for the minimum wage.
The Israeli government is faced with an opportunity to prove the strength of its economy and to prioritize local industries.
I call on the government of Israel and the finance minister to strengthen the Israeli economy by diverting money from the budget to strengthen the cleaning industry, and to immediately approve the absorption of additional foreign workers. When you neglect the cleaning industry, you neglect the health of the nation.
The writer is the CEO of The Israeli Organization of Cleaning Companies.