The struggle over the employment model at Ben Gurion Airport: The Treasury wants to transfer activity to franchisees

Following the turmoil at Ben Gurion Airport last Thursday in the wake of workers' sanctions, committee representatives led by Pinchas Idan and the management of the Israel Airports Authority (IAA) reached an understanding on continuing recruitment and transferring employees from other departments to baggage handling. While the issue of tenure was taken off the table, the committee's core demand remains the hiring of more permanent workers. Pinchas Idan has repeatedly stated that temporary staff cannot cope with the workload and that only permanent tenure ensures reliable and professional performance.

The Treasury, however, clarifies that tenure will not be approved under any circumstances, nor will the hiring of additional family members of Idan be permitted. The ministry does not support the current IAA employment model, noting that the seasonal nature of airport operations makes it inefficient to pay full salaries to staff who work part-time for half the year.

The Treasury seeks to transition the organization to a franchise model, where operation and maintenance activities are transferred to private contractors. In this scenario, companies that fail to meet requirements would be replaced, and the resulting competition would lead to better service. The ministry argues that private firms, driven by profit maximization, are more efficient and are not subject to the powerful workers' committee that can shut down operations.

Currently, every action at Ben Gurion Airport is priced based on fixed parameters, leaving no room for bargaining or flexibility. A transition to franchisees would create price competition, similar to what already exists in ground handling, terminal cleaning, and planned parking operations. While international airports frequently use private companies for aircraft cleaning, foreign airlines in Israel are forced to rely on the IAA's services without competitive alternatives.

The IAA is currently executing a 7 billion shekel expansion plan for Ben Gurion Airport. The Treasury views it as absurd that management must spend time arguing over the hiring of 200 baggage handlers instead of focusing on strategic projects. With wage costs consuming 60% of the budget, the ministry is reviewing the IAA's budget and intends to promote the franchise model to prevent future airport shutdowns.

The Israel Airports Authority stated: "Contrary to claims, no demand was transferred to management from the committee to absorb permanent workers. Recruitment is carried out in accordance with an orderly, pre-determined plan based on operational needs, and is not a move born from recent events."