KKL Union Boycott Forces Cancellation of 1 Million NIS Employee Event
A KKL employee appreciation event was canceled after union leader Israel Goldstein ordered a boycott, wasting over 1 million NIS. The move intensifies a dispute over management's efficiency plans and workforce cuts.
More than 1 million NIS of public funds from the Jewish National Fund (Keren Kayemeth LeIsrael - KKL) have been wasted after an employee appreciation event scheduled for today was canceled. The cancellation followed a directive from the workers' union to boycott the gathering. The event was set to take place at the Shuni Amphitheater, featuring performances by prominent Israeli singers Shlomi Shabat and Pablo Rosenberg.
Yesterday afternoon, the head of the KKL workers' union, Israel Goldstein, sent an unequivocal message to employees instructing them not to attend. "We instruct all of you to boycott the event and not take part in it," Goldstein wrote. Because the union announced the boycott just 24 hours before the show, KKL management had no choice but to cancel it.
KKL CEO Ilan Shohat sent a message yesterday announcing the cancellation, noting that the union's decision was made "with the clear knowledge that this decision would harm your status and dignity [as employees] and cause financial damage of over 1 million NIS due to the cancellation of the event."
The Roots of the Conflict
The cancellation of the concert is the latest chapter in an ongoing dispute between the workers' union and KKL's new management, which took office in January this year following the appointment of Eyal Ostrinsky as Chairman of the Fund. The conflict stems from efficiency and cost-cutting measures, alongside efforts to curb the power and influence of union leader Israel Goldstein, who is considered a highly influential figure within the Likud party.
Among other measures, KKL management decided to directly manage the employees' welfare budget, which totals approximately 7 million NIS—a sum previously controlled by the union. The primary move, however, is halting the growth of the workforce.
In 2025, KKL employed 1,244 workers. Ahead of 2026, professional staff asked Ostrinsky to approve 1,400 positions, but he agreed to authorize only 1,275. Currently, management is preparing the 2027 budget, which is expected to see the workforce decrease to 1,250 due to the retirement of veteran employees.
Uncontrolled Growth and Rising Costs
The necessity to halt personnel growth follows an extraordinary surge in hiring that drove up the fund's fixed expenses. From early 2023 until January of this year, the fund was chaired by Yifat Ovadia-Luski, also of the Likud party. During her tenure, Luski failed to appoint a permanent CEO, and the fund was managed by acting officials for nearly three years. Concurrently, the workforce expanded rapidly.
Over a five-year period, the number of KKL employees surged by nearly 30%, rising from 953 in 2021 to 1,233 at the end of 2025. This spike led to a 44% increase in the fund's fixed expenses, which jumped from 444 million NIS in 2021 to 640 million NIS in the recently approved 2026 budget. The bulk of this growth occurred under Luski, during whose term the fund hired 220 new employees. Sources within the fund state that during these years, Goldstein became highly dominant and was involved in numerous appointments.
Legal Limitations and Budget Realities
Because the union's action is a boycott of an after-hours event rather than an official strike, KKL management cannot petition the labor court to force employees to attend. In his letter, Goldstein argued that the boycott was necessary because "management consistently chooses to sideline and ignore the workers' organization on a long list of material issues, including employee events and welfare."
Goldstein also claimed that the planned cuts to fixed expenses "constitute a direct blow to the workers." However, projections show that KKL's fixed expenses in 2027 will remain at 640 million NIS, identical to 2026. Adjusted for inflation, this represents a real-term cut of tens of millions of shekels. This reduction is driven by the shrinking workforce and a new selective hiring policy implemented by the CEO, under which new staff are hired with extreme precision. Working conditions themselves will not be harmed.
During a board meeting yesterday, Ostrinsky estimated that the average gross monthly salary of KKL employees is 25,000 NIS, making it one of the highest in the public sector.
Responses
KKL management did not provide an official response.
Union Chairman Israel Goldstein stated in response:
"The KKL workers' union will continue to act decisively, day and night, on behalf of the organization's employees and to protect their rights, even against a management that mistreats workers and acts out of narrow, political motives against the organization and its staff. The claims made by management are entirely baseless, and some cross the line into defamation. The responsibility and authority for hiring at KKL lie solely with management, and any attempt to roll this responsibility onto the union simply does not align with the facts."
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