By Tsvi Kan-Tor, Partner |

The landscape of corporate expansion within Israel’s labor market is rapidly evolving, with an impressive surge in the number of newly established corporations licensed to employ foreign nationals in the construction industry. What was once a count of 40 corporations pre-war has now swelled to 88, with ongoing requests under scrutiny for further additions. Notably, among these burgeoning entities are major contracting firms, recognizing the imperative of self-reliance amidst prevailing challenges.

Shortcomings in Government Crisis Management Strategies

While the proliferation of corporations appears promising,  KTA underscores critical shortcomings in the government’s crisis management strategies. According to KTA existing approaches, primarily bilateral agreements (G2G) and engagements with human resources corporations (B2B), fall short on two fronts: they fail to eradicate concerns of bribery and human trafficking, and they suffer from sluggish bureaucratic processes. The pace is a significant hurdle; whether navigating the convoluted bureaucracy of bilateral agreements or the logistical bottlenecks inherent in engaging human resources companies, the recruitment process is unduly protracted.

Shift to Bilateral Agreements and Ethical Labor Concerns

In response to mounting concerns over ethical labor practices, direct employment arrangements through corporations have been scrapped, with Israel pivoting exclusively to bilateral agreements. Hence, the recent green light for corporation activation for recruitment purposes represents a noteworthy departure. Concerns raised by the American government further underscore apprehensions regarding the potential exploitation and trafficking of foreign workers in Israel’s construction and agricultural sectors.

Addressing Bribery and Trafficking Challenges

Speaking to the persistent challenges surrounding bribery and trafficking, KTA delves into the complex dynamics of brokerage fees within the construction domain. While direct engagement with local governments may mitigate some bribery risks compared to private sector transactions, the issue persists albeit in a different form. Partner Tsvi Kan-Tor, who also chairs the Foreign Workers Committee at the Chamber of Commerce, advocates for a transformative approach exemplified by the JOBLIO platform, represented by KTA Group in Israel. This pioneering model, inspired by successful paradigms in countries like Germany and Canada, prioritizes direct employment to circumvent corruption pitfalls.

Broader Access to Job Placement Platforms

KTA also underscores the need for broader access to job placement platforms to expedite labor influx. Unlocking platforms for multi-country recruitment offers unparalleled efficiency compared to protracted bilateral negotiations. Presently, such platforms cater primarily to industry experts, but KTA and Relo 360 advocates for broader access to maximize its potential. KTA envisions a streamlined process where Israeli employers gain ministry-backed cover for employees, facilitating seamless integration into these platforms.

Embracing Transparency and Ethical Practices

As Israel navigates the intricate landscape of foreign labor recruitment, the discourse spearheaded by KTA Group and initiatives like JOBLIO underscores a pivotal paradigm shift towards transparency, efficiency, and ethical labor practices. Through innovative models and strategic partnerships, Israel stands poised to address its labor needs while upholding international standards of fairness and integrity.