Review 22.10
25 July - 7 August 1997

In walks Haim Ramon - unassuming, affable, and one of the keys to a victory for the Israeli Labour Party in Israel's next elections, due in the year 2000. But this is too far away for Ramon. "The challenge is during this year to reach an early election, and to achieve that early election we have to work very hard. We have to convince the people; we have to convince members of other parties that they made a mistake with this Prime Minister; and he must be replaced," he says in a calm tone that Israelis of a certain vintage produce. I was reminded of Yitzhak Rabin for a moment, except Ramon speaks at more than a few words per minute.

The conversation turns immediately to Israel's Likud Prime Minister Benjamin Netanyahu. "A year after (his victory), the lack of reciprocity, he didn't get anything, nothing. And now he's running after Arafat. He's asking to meet with him. Without Arafat even starting to implement what Netanyahu is saying. Where is the demand for reciprocity?" Ramon asks. In the wake of Labour's May 1996 election defeat Ramon was the target of most criticism. In particular, questions were raised over his decision not to use footage of the assassination of Rabin in election advertising. His answer is simple, "Polling and analysis led to the decision, not feelings about Rabin."

Ramon, born in a poor neighbourhood in the Israeli port of Jaffa in 1950, has been a labour activist for most of life. Rising rapidly in the Labour Party, controlled for most of the period from 1974 to 1996 by either Rabin or Shimon Peres, Ramon realised that his star must be hitched to one of them.

A long time protege of Peres, in 1992 he chose Rabin. By swinging his support behind the retired general at a critical stage of the Labour primaries, Rabin clinched victory over the rival Peres, and Ramon later directed the successful election campaign against the incumbent Yitzhak Shamir.

The star was rising on Ramon's career in government. Appointed Health Minister after the 1992 election victory, he set his sights on reform of the Histadrut and health services. However, a bitter Peres was determined to have his revenge. Ramon's reforms were blocked by Peres' faction in the party and he subsequently resigned both from his ministry and the Knesset. Single-minded in his pursuit of his goal, Ramon simply bypassed the government and focused directly on the Histadrut, which was also Peres' power base in Labour. He formed his own party and ran for president of the Histadrut against Peres' choice Haim Haberfeld - and won.

"When I came to the Histadrut it was just the name, it was a dead organisation," he said, "It was collapsed, bankrupt from any aspect. It was about 2 billion shekels ($800 million) in debt. Things that were under the Histadrut control, like the major health fund in Israel, was also bankrupt. The pension fund went bankrupt. Enterprises went bankrupt." Reform was vital if the Histadrut was to survive, according to Ramon, and such reform took three major steps.

Firstly, the Kupat Holim health fund, which supplied most of the Histadrut's income was separated from membership of the organisation. No longer were those who wanted to join the health fund required to join the Histadrut. "That cut (Histadrut membership) on paper," Ramon explains, "because people were forced to be members of the Histadrut if they wanted health insurance."

The success is in the results, he says. "The level of provision of health services was less than any other health fund in Israel. And after this it was increased dramatically."

The bankrupt pension fund was next on the list. "We saved the pension fund by an agreement with the Government, opening the market for competition between pension funds and allowing the workers to choose the best pension fund (to suit their needs)."

The third stage was the sell-off of assets and businesses. "We also brought an end to the situation where the Histadrut owned an enterprise on one hand and represented the workers on the other hand," he said, "It was a conflict of interest, by definition. And we started to do what a trade union has to do - to bring more members to be under collective agreements. This was something the Histadrut failed to do over the last 30 years. Most of the enterprises were unorganised labour. We increased from 450,000 workers under collective bargaining to 600,000 in two years. Now it's a trade union - that's the most important achievement."

And by reforming the Histadrut, Ramon argues that he has also saved it from Likud. "The trade union leadership, because they don't depend on any government, is much more independent. They don't need governmental money for the health fund or pension fund. So they can be free and independent to insist on their demands and struggle against the government."

The social reformer in Ramon also sees the current controversy over the conversion bill in Israel as a potentially defining factor in Israel's relations with the Diaspora. "Most Israelis are Orthodox Jews," he explains, although admitting that they might not be religious, and "The conversion bill is only meant to reinforce the authority of the Orthodox rabbinate in Israel, not in the Diaspora." Liberal, Conservative and Reform conversions conducted outside Israel will not be invalidated by this bill. But his concern lies in the power of perception. "What is important is that it has become a symbol and that must be dealt with," he said. "The Ultra-Orthodox are there, well organised and must be considered," Ramon believes, but they are not the decisive factor in Israeli politics as implied in many reports.

Convincingly defeated by Ehud Barak for the post of Labour Party Chairman, and also well behind the support for the runner-up Yossi Beilin, Ramon still sees himself among the leadership of Labour in Israel. Yet he views the defeat of Likud as vital, and refuses to criticise his new party chairman. "I am in the leadership of the Labour Party, and I think that the major role is to be active in opposition and to start to act as an opposition.

Unfortunately, this government is giving us too many reasons to be active as an opposition. The task of this opposition is to replace the government, because this is not a government Israel needs now. And I will be part of the efforts and leadership of the Labour Party."

The Netanyahu Government is the glue to bind a factionalised Labour Party together. "I think that the tasks left by the government will force all of us to work together." Labour's leadership, he believes, "are not judged by the power they have, but by their political status, by their public standing, and by their ability.... we can be coherent together. I think those who put their personal interests and ambitions as the first priority, before acting as an opposition to Likud will be making a big mistake.

"The Likud are not making any reforms. They are talking a lot but they are not doing anything. On the contrary, the economy in 1996-97 has slowed down, after 5-6 years of growth about 7 or 8% we are down to about 3%. And that means effectively zero growth because the population growth is about three percent a year."

And on the peace process, Ramon is scathing of Likud. "Maybe they have very good intentions, but lets judge them according to results. They promised that they would bring a secure peace, and they would negotiate with Syria, reach peace with Syria; the Arab world would continue the process of normalisation with Israel; and of course the international community would continue to support Israel," he says. "That was what Netanyahu said in his inauguration speech in the Knesset."

"But a year after, we are in a deadlock with the Palestinians after we suffered during terrible events with the (September 1996) opening of the tunnel (in Jerusalem). The Palestinians killed 16 Israeli soldiers ... in a battle. Syria - we didn't even start to negotiate. The process of normalisation with the Arab world doesn't exist. On the contrary, the Gulf states, Tunisia and Morocco have called back their representatives in Israel."

Likud policy has not just failed to produce peace. Israel's situation is getting worse, he argues. "The Arab world is united like they were not united since the 1980s against Israel. And they have made very extreme decisions against Israel."

The international community and the United Nations are again virulently attacking Israel. "Ten, 20 years ago we went back to the situation where two or three countries in the United Nations - Israel, the United States and Micronesia - these are the only countries that are voting against anti-Israel resolutions. And that is a fact," Ramon says, with a tone of regret in his voice.

"These are the results (of Netanyahu's year in office). And I think that you have to judge somebody according to the results of what he did and not according to his excuses, which are to blame the situation. Netanyahu didn't tell the Israeli people that all this will be terrible and the Palestinians will not like to make peace with Israel. He said that according to his own way, his own principles, he will reach peace. And that is not what has been happening in the last year."

If Labour is to rebuild what it sees as the damage of Likud, what are the basic principles that it must impart to the electorate? Of that, Ramon is sure. "I believe, firstly, that we have to continue our belief in the peace process according to the principles of Rabin and Peres as they implemented them in the 1992-96 government. It is the most important thing to try and reach peace with our neighbours, and the Palestinians, based on a fair compromise and reach peace and security based on that we will separate ourselves from the domination of two million Palestinians. We will recognise their right for self-determination and they will recognise our right to live in peace and security... There is no alternative, and we can see now that we are in a deadlock with the peace process on one hand and no alternative to the Oslo way."

The peace process aside, the Labour Party is also a social democratic party. "The second thing is to create a social democracy in Israel, based on social democratic principles - like the good social democracies in Europe, Australia. That is very important, to close the gap between the classes in Israel, between poor and rich, and to provide to all the people their basic needs on a reasonable level - education, health, housing. This is the true way of the Labour Party - a social market economy, not a wild market economy, but to let the people have initiative, be free market, but restrained by the social needs of the people."

And for Ramon himself. What is his future in Labour, and is it true that he has made up with Peres, and will again champion his views in the Labour Party? "I spent a lot of years with Peres and Rabin, and I learned a lot from both of them, and in one way or another I believe that what both of them stand for, especially in the last four years. We have to continue (the peace process) and I will try to do my best in order to contribute to their way to peace, and that their principles will be the principles of the Labour Party in the future. That's what I will stand for."