The new payment method has been agreed between the Palestinian and Israeli authorities, who consider it more efficient and secure, but workers fear that hidden fees and taxes will dilute their wages.
Tens of thousands of Palestinians working in Israel went on a one-day strike today, protesting a decision to deposit their wages into bank accounts instead of receiving cash in hand.
The new payment method has been agreed between the Palestinian and Israeli authorities, who consider it more efficient and secure, but workers fear that hidden fees and taxes will dilute their wages.
About 200,000 Palestinians cross daily into Israel or Jewish settlements to work. On average, they earn twice as much as those working in Palestinian public services and businesses. Most of these workers do not have a bank account. Registering their salaries could create a new source of revenue for the Palestinian Authority, which is facing serious financial difficulties, but also a windfall, due to fees and charges, for Palestinian banks.
According to workers who spoke to Reuters, under the agreement wages will be paid on a weekly basis and the banks’ commission will be $1 for each transfer. Palestinian Authority Labor Minister Nasri Abu Jayes said the new arrangement aims to protect workers’ rights and there are no plans to impose new taxes.
Mohammad Kasib, 43, who works at a steel factory in Israel, said he and thousands of others are protesting the decision, which was imposed without taking workers’ views into account. “They decided without consulting the union. The employee, if he does not agree, will lose his work permit,” he argued.
Basim Al Waheidi, 55, who works in construction, said that in addition to the money they will lose due to taxes and bank fees, the workers do not want their wages transferred to PA banks. “We fear for the future and there is a crisis of confidence,” he explained.
The representatives of the workers said that if the measure is not cancelled, they will escalate the mobilizations and may go on a permanent strike.
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