A secret apartment fund in Tel Aviv and jobs for cronies: how KKL became the most powerful union in the country
The building donated to the state that became subsidized housing for cronies, the massive pressure on employees to register for Likud, and the family ties reaching the top of the Histadrut. A glimpse into the mechanism of a workers' union where loyalty to the chairman is a necessary condition for survival. "Everything is with the approval of the Histadrut," they say, while the public is left out.
Nehemiah Halperin was a passionate Zionist. In 1971, he decided to donate the building he owned at 3 Zamenhof Street in the heart of Tel Aviv to the State of Israel, out of a desire to help the Zionist enterprise. The building was registered under the ownership of Keren Kayemeth LeIsrael (KKL), but it is doubtful that Halperin imagined that in the apartments he donated, a very specific population would reside in later years. This old and beautiful building is just the tip of the iceberg of what is called the secret fund of KKL - dozens of buildings and hundreds of apartments in the heart of high-demand areas, which remained far from the public eye and are managed, apparently, as private property of cronies. The general public is almost unaware of the existence of this fund, and it turns out that a significant part of the KKL employees themselves do not know about the possibility of renting an apartment in the heart of Tel Aviv at ridiculous prices. The apartments are sometimes transferred by a method of "friend brings a friend," and those who win them are often those with the right connections. "It ends in a black hole of lies," say sources familiar with the system, "the public has no idea what is happening there."
The winning formula of the workers' union
Since Halperin's days, the management has changed, the board of directors has also undergone changes, but Israel Goldstein, chairman of the KKL workers' union, and his colleagues on the committee have maintained what looks like a winning formula. Goldstein is considered one of the most powerful people in the organization, one who preserves his power through a combination of generous benefits for employees on the one hand, and strict discipline on the other. His style is sometimes described as violent and disrespectful, one that sows discord and defies anyone who tries to challenge his authority.
This power is expressed in the most extreme way in meetings with the organization's management. When the new KKL chairman, Eyal Ostrynsky, tried to speak at a conference with new employees, he encountered fierce resistance from the committee members. "We have been working for ten years, we have never harmed employees," he shouted, and the conference ended in disgrace when Ostrynsky was forced to leave the place. Board members Haim Menachem and Eliran Shmuel also tried to talk to the management representatives, but encountered what they call the "siren song" of the committee - shouting, trumpets, and calls of "go home." In the end, those who clashed with Goldstein found themselves outside the KKL offices, sometimes under close and threatening escort by committee members almost to their doorstep.
The KKL workers' union is considered by many to be the strongest in the country, not necessarily because of the number of employees, but because of its power to threaten and the amount of money it holds. "This is the strongest union in terms of its ability to intimidate employees," says a source familiar with the details. Goldstein himself takes care to maintain this image, while simultaneously maintaining extensive ties in Jerusalem.
Likud's vote contractor
Goldstein's friendship with senior Israeli politicians is not based on excessive affection for nature or forests, but on a simple fact: he has become a central vote contractor for Likud. His power is based on about 600 registered members, almost half of KKL employees and their families, who are sometimes required to vote in the party's primaries according to the lists recommended by the committee.
Employees in the organization describe massive pressure to register. Those who do not register for Likud are approached personally and told that it will "strengthen Israel," and if it strengthens Israel, it will "strengthen the employees." Another employee received a phone call from Goldstein's assistant, and although he clarified that he does not vote for Likud at all, he was required to register anyway. "I stuttered, I was in shock. I knew that if I didn't register, they would mark me, so I had no choice." There were employees who said they were forced to provide their credit card details to charge them and their family members for registration.
The system works through war rooms set up ahead of elections, where committee members sit and make non-stop phone calls to employees. "Massive pressure, promises, and threats," they describe. Promises of a new car or a promotion, alongside implied threats about non-support in tenders. While some senior officials manage to stand up to the pressure, field workers, such as foresters in the Negev or the Galilee, feel they have no choice but to obey. Recently, clear instructions were distributed to support MK Amit Halevi, alongside other names such as MK Ofir Katz and MK David Amsalem. The employees' WhatsApp groups become a propaganda platform, and anyone who dares to challenge this receives a warning: "We will not tolerate traitors among us."
Goldstein for his part claims that everything is done of free will. "I never forced people to register," he declares, "I told people that if they strengthen us to help KKL, as far as I'm concerned, they can also vote for the Joint List." He also refuses to define his conduct towards board members as bullying, but as "organizational steps within a labor dispute."
KKL's bubbling pot
Why do employees stay despite the difficult atmosphere? The answer lies in the salary conditions and welfare. KKL is what many call a "meat pot" in the true sense. The money flows there like water: crazy salaries where a department head can reach 40 thousand shekels a month, holiday bonuses in the amount of thousands of shekels, and a generous scholarship system that gives thousands more shekels for each employee's child.
The committee led by Goldstein receives from the management an annual welfare budget of about 7 million shekels. This money is translated into subsidized flights to Greece, shows, vacations, and events for families. These conditions are so good that many employees refuse to retire even when they reach retirement age.
On the list of employees who remained in the organization beyond the age of 67, at least 22 names appear, five of them committee members. One of the most prominent cases is that of Zaki Tzabari, a veteran committee member known for his combative style, for whom a retirement party was held only recently, long after he was supposed to retire. "The committee is ready to die for the employees," they say there, and the management is forced to agree to keep the veterans to maintain "industrial peace."
Parallel to the retention of veterans, KKL's manpower has jumped by 32 percent in just five years. In 2021, 953 people worked in the fund, and today the number stands at 1,264. This growth is not necessarily due to operational need, but rather from creating jobs for cronies.
Cronies policy: the full list
Among the new employees who have joined KKL in recent years, one can find names that connect directly to the political and organizational leadership in Israel. Dana Katz, wife of MK Ofir Katz from Likud, received a permanent secretary position without a tender. Shahar Maimon, brother of Yaniv Maimon, director of the Southern District in KKL, received a forester position.
The connection with Minister David Amsalem also came up in previous investigations. His partner, Sigalit Yona, was previously employed by the Jerusalem Municipality but it was claimed that she almost never came to work. After she resigned following the exposure, it was claimed that an attempt was made to arrange a job for her as a secretary in the KKL management, without the need for presence - an attempt that the current management refused.
Other cronies include Lea Mashael, daughter of Likud activist and vote contractor Itzik Kaufman, who was accepted as a secretary in the pedagogy department. Hagar Yaakov, wife of Roi Yaakov, deputy chairman of the Histadrut, serves as an administrative coordinator in the Northern District. "It's a dream, the offices and the committee all together," she describes the place. The connection to the Histadrut does not end there: Eran Bar-David, brother of Histadrut chairman Arnon Bar-David, became a project manager in KKL's real estate company.
On the other side of the deal, Israel Goldstein's wife, Mazit Goldstein, who was previously a beautician, moved to work as a financial report coordinator in the Galilee District of the Histadrut. Goldstein himself claims there is no connection between the appointments. "My wife moved to the Histadrut without any connection to me," he says, emphasizing that Arnon Bar-David's brother also works under a contract that is not related to him.
The cheap apartments in the building in central Tel Aviv
The story returns to the building at 3 Zamenhof. It turns out that not only does the general public not benefit from the donated apartments, but the family of committee chairman Goldstein himself benefits from them directly. His wife, Mazit, signed a contract with Himnuta, KKL's real estate company, to rent an apartment in the building. The rent price set: only 3,800 shekels per month - a price that is at least two thousand shekels lower than the market price in the area.
Other KKL employees, who do not enjoy these connections, express frustration. "I would be happy to know if I have the possibility to rent an apartment there," says one of them. Goldstein, for his part, does not see anything wrong with this. "We worked by procedure, we received the apartment just as others received," he claims. According to him, these are prices determined according to Himnuta company's appraisals. When asked why he is entitled to more than others, he answers simply: "There are procedures, and everything is by procedure."
While the mechanism is inflating, expenses are increasing, and the committee continues to strengthen, the final bill falls on the public. The buildings donated to the state for the public good have become a bargaining chip in a system of connections and interests, where loyalty to the vote contractor is sometimes worth much more than professional skills.
Responses
From the Histadrut it was stated: "The brother, Eran Bar-David, was a sales manager in the past and has been employed at KKL for over seven years after being found suitable for the position, Arnon was not involved in his hiring process. Hagar Yaakov was accepted for work in 2017 before her husband Roi was elected deputy chairman of the Histadrut and he was not involved in her acceptance. Lizet Goldstein serves as district treasurer and the attempt to link her employment to the employment of family members of Histadrut senior officials at KKL is baseless."
From KKL management it was stated: "A new management is serving at KKL, which is conducting a thorough house cleaning regarding the organization's conduct in recent years. Some of the investigation's topics have already been handled with full severity and as more things arise that were done not in accordance with the law or procedures, they will be handled thoroughly. Yitzhak Palachi will be moved from his position in the committee to an executive position. The renting of apartments to KKL employees and the puzzling appraisal will be checked and the procedures will be changed to a strict and supervised standard."
Response of the KKL workers' union: "The claims raised in the article are baseless and do not reflect the facts. The committee, led by Israel Goldstein, is proud of its work and its methods of operation for the excellent employees of KKL. The renting of the apartment in Tel Aviv was done in accordance with the procedures and the bylaws. KKL employees living in Himnuta properties are a marginal part of the amount of properties. The authority and responsibility for recruiting manpower are those of the KKL management."
On behalf of Lizet Goldstein it was stated: "Lizet has a 25-year career in accounting and treasury and she worked in cosmetics in her spare time."
From the office of Coalition Chairman Ofir Katz it was stated: "Dana's entry into the position was without any connection to Ofir Katz, and before he was even a Knesset member."
