Unemployment Assistance During the Period of the : should give the maximum tax to the un­ history of the labor movement."10 Philan­ Philanthropy, Productivity and Mutual Aid* employed. 5 thropy rather than productivity was beginning The response was not fast in coming; the to emerge. The very ideals and principles of RUBEN SCHINDLER, D.S.W. economic situation was beginning to take its the labor ethic was being threatened. The days Bar-Ilan University, Ramat-Gan, toll. In Petah Tikva, for example, the earliest of Chalukah (contributions from abroad to of Jewish settlements, conditions for the those living in Palestine) which the pioneers In the Spring of 1970, Israel's Parliament passed legislation requiring the payment of unem­ worker became unbearable. As an observer conquered so successfully were threatening to ployment insurance . . . Its seeds were planted four decades earlier, when the Yishuv . . . noted, "There is no housing. On two dunam return once again. of land one can find 250 inhabitants. In a tent Seua-Assistance Introduction Mutual Aid that is designed for four beds, twice the num­ The unemployment assistance program was Every society has been faced with economic Both the Vaad Leumi,3 or National ber occupy that space. We are confronted with designed in 1926 and funds were distributed crisis bringing unemployment, hardship and Council, and the Histadrut, General Federa­ sickness, even epidemics with almost 1,500 during the summer. The by-laws of the pro­ 6 hunger to its inhabitants. Such was the case of tion of Jewish Labour in Palestine, turned to workers starving." At a gathering of workers gram provided for residual aid. Support was the Yishuv in Eretz Yisrael, during the fourth the mandatory government for assistance. in Herzeliah, Ben Gurion, chairman of the given only to those unemployed who were out immigration (1924-1929). Suggestions on how They requested funds for the creation of Histadrut, addressed the assembly to inform of work for at least two months. Recipients to deal with the problem were not only of a public works. The response was neither en­ them of economic developments. "Leader," registered at the labor board three times a pragmatic nature, they reflected deep seated thusiastic nor forthcoming. cries came forth, "give us bread." His imme­ week, and funds were granted after an values and views which determined the solu­ The Histadrut thus turned inward to its or­ diate response was "I do not have bread, but I interview by a committee of the board. The 7 tions sought to the crisis at hand. These views ganization and membership for help. Perhaps do have a vision." The vision of a Jewish so­ stigma which accompanied assistance was were to influence welfare policy in general and the unemployment crisis could be met through ciety producing and creating through labor, vividly described by one observer. unemployment policy in particular. their own efforts and energies. Consequently viewed as fundamental in building a home­ It is sufficient to stand on Friday during the Between the years of 1925 and 1927, the Yom Choser Avodah, "a work day for the land, would have to be delayed. There simply distribution of financial aid in the labor ex­ economic situation in Palestine became most unemployed" was declared. The principle was was not enough work to go around. Efforts on change and observe even from afar the de­ difficult. Unemployment was beginning to one of mutual aid, the more fortunate assisting all fronts, including those by the World struction this brings to our pioneers. Are take its toll. Of the work force, estimated at their fellow members in time of need. Funds Zionist executive, to stimulate the economy these not the same pioneers who were once so 26,000 people, about 35 percent were without received from the employed would be utilized came to no avail. It has been suggested that the proud in displaying the flag of religion of work?15 jobs.l In the proportion was higher, for creating work projects for the unem­ executive made "desperate efforts" to request Joseph Sprinzagl^ was the director of the with approximately 50 percent of the work ployed. Ben Gurion stated that such coopera­ funds for work projects, but without much wno force unemployed. These trends were likely to tion is "an ideal which unifies the workers into success.8 The alternative and perhaps only labor exchange noted 4 choice available at the time was the creation of increase since immigration to Palestine was one body." This noble idea was insufficient What was the tragedy of the period? The continuing with 1,500 people entering the however to stem the tide of unemployment or Seua (lit: assistance support) or financial aid tragedy was a double one. Hunger and assist­ country monthly. The non-aligned newspaper reverse the economic situation facing the for the unemployed. It was the Zionist execu­ ance. Hunger hurts the individual and aid de­ Haaretz indicated that the newcomers lacked Yishuv. Neither were all workers ready to par­ tive who initiated the idea for its establish­ grades him. He ceases to be a human being financial means, thus burdening the economy ticipate in this voluntary enterprise. An edi­ ment, and it was through labor boards in who can stand straight.13 9 even further. 2 A central issue which took on torial appearing in , the labor daily was Palestine that assistance was arranged. A more moderate view by a leader in the labor dramatic proportions was the question of how critical of the limited support. The creation of relief payments came under movement suggests that there was really little severe criticism by the Histadrut. Some termed to deal adequately with the problem of un­ What have we done in the area of Mutual choice. He states that more industrialized employment. The situation was grave with the Aid? ... Awaken friends, awaken, the hour is it "as creating the most tragic chapter in the countries are forced to provide financial aid in Yishuv not having faced such a severe test pressing. Every worker in the city and village periods of crisis. If there was any criticism it since the Second Immigration in 1904. 5 Davar, January 24, 1926. was directed more to the administrative 3 The Vaad Leumi, or National Council, was 6 Davar, February 25, 1926. * I am indebted to Itzhak Ben Aharon, M.P. a 10 A. Kersel. The Histadrut, Tarbut Vechinuch, elected by the Asefot Ha-Nivtarim or elected assem­ member of the Fourth Aliya and former Secretary 7 Solomon Aran, "Shnotiam Harishonot" (The 1960, p. 40. bly which had developed its own governmental General of the Histadrut for the extended interview First Years) , No. 12, 1960. 11 A Rosner, Kuntras, Vol. 15, No. 1, 1927, pp. agency. The National Council comprised the execu­ granted me in November 1976 in Tel Aviv for the tive committee of seven to administer the internal 8 Giladi, Ibid., p. 191. 27-29. purpose of this paper. 9 2 affairs of the Jewish community. Report of the Executive of the Zionist Organi­ 1 Speaker of the House in Israel's First (Knesset) 1 Dan Giladi, Jewish Palestine During the Fourth zation, The 15th Congress of Basle, August 30, Parliament. Aliya Period (1924-1929), Tel Aviv, Am Oved, 1973, 4 Ben Gurion, "Ha-Histadrut-VeHamiflagoth," September 9, 1927, London, Central Office of 13 Zvi Even Shoshan, Tultod Tnuot Hapoalim pp. 179-185. Kuntres, Vol. 13 No. 13, Summer 1926. Zionist Organization. Berez Yisrael, Am Oved, 1966, p. 31. 2 Haaretz, Dec. 10, 1925. 357 356 A sense of reality remains however since, the Starting out modestly as a loan fund for features where men and women were "ex­ ty and inequality. These issues are complex in probability must be reckoned with, that a unemployed workers, it gradually grew into a amined seven times before aid became avail­ themselves. . . But they do not enter into the considerable residue of urban unemployment program for financial assistance and later ex­ able."'4 very substance of the debate.'8 will remain. It is for this reason that it has panded to providing a host of social services. The view that no other options were open The conflict between labor leaders and the been deemed prudent to suggest the budget Ostensibly it would appear contradictory that was certainly in the minority. Furthermore it Zionist executive over policy increased. Ben . . . have provision for the unemployed. the very movement which so vehemently op­ was not only the human dimension and stigma Zvi, a member of the labor executive and However, as far as financial exigencies posed any form of aid should be the very in receiving aid which was criticized. The issue Israel's second president, charged the Zionist permit, the provision of public works is preferable to the grant of subsistance al­ designers of such a service. The rationale for was more fundamental. Seua was in direct executive with misconstruing the aims of the lowances.22 its establishment was three-fold. To begin contradiction to fulfilling the goals and aspira­ movement; if funds for work projects were not with, assistance was based on the principle of tions of . Only through employment forthcoming, then such monies would be col­ In the latter part of 1927, efforts by the Zionist mutual aid. It was thus selective, only pioneers and productivity could one arrive at the lected independently by the movement. Ben executive were partially instrumental in bring­ or laborers benefitting. Secondly, it was creation of a national homeland. Aliya for ex­ Gurion went further and stated that he would ing Seua, unemployment assistance, to a close. originally created as a loan fund, thus elimi­ ample would have to be curtailed if work was withdraw from the Zionist executive. He ac­ They were responsible for stimulating govern­ nating any thought of philanthropic contami­ not available. Ben Gurion declared "For us cused them of inaction and castigated them ment work projects, developing small industry nation. Thirdly, and perhaps most significant, everything is aliya. One cannot expect the land severely by taking the position that there was and absorbing workers in cooperative settle­ was the fact that though in later years it was to to develop, industry to grow, and population an "excess of in Palestine," and that too ments. 23 The consequences were that aid to operate independently, at the outset it was in­ to increase if employment ceases."15 many settlements were created without aim the unemployed ceased in Jerusalem, , 9 extricably tied to and under the auspices of The national executive of the Histadrut and purpose.' Upon his return from the and Afulah. By Passover 1928, Seua came to a Keren Choser Avodah. This was an investment called for supreme efforts to channel funds for Zionist executive meeting in London, Ben close in Tel Aviv and the country as a whole. fund for the creation of work projects, which work projects. It turned to the Zionist Gurion proposed to the National Histadrut the A significant drop in unemployment was following motion: channeled monies to support Mishan. The movement and insisted that an investment of also due to the ratio of immigration to main purpose of the fund for the unemployed this nature would bring the whole Zionist emigration, the latter being considerably if within a month the unemployed will not was to get as many people back to productive cause forward. If a positive response is forth­ higher than the former. The development of find adequate work which will satisfy the employment. Mishan served as the arm which coming then, "aliya will continue. If not . . . the citrus industry was an additional factor in Histadrut . . . then it does not see any possi­ organized social services when employment aliya will cease and people will leave the the employment of thousands of new workers. bility for its continued participation as was not available. country . . . work induces aliya. "16 In the last quarter of 1928, the economic situa­ members in the Zionist executive.20 Recognition by the labor movement that aid One of the strongest advocates of the cessa­ tion had improved considerably. At least for The motion was defeated by a narrow margin in time of crisis was a necessity, particularly tion of unemployment assistance was Ben the while the vociferous ideological conflict of two votes reflecting the severity of the situa­ for the unemployed, presented a dramatic Gurion. The executive head of the Histadrut, tion. regarding financial support for the unem­ change in outlook. Only four years earlier such and later Israel's first prime minister, ex­ It would be incorrect to suggest that the ployed had abated. thinking was viewed as almost heretical. The panded on the theme of work and Zionism. He Zionist executive was totally antagonistic to Mishan social services which Mishan was to provide, indicated that the cause of labor or responsible for inaction. Though the debates were over and unem­ though selective in practice, did establish a Chaim Weitzmann, president of the Zionist for all of us lack of employment is not only a ployment assistance ceased, the hardships, more liberal outlook for members of society question of those who suffer, but a question movement, was certainly sympathetic and hunger, and frustration could not easily be facing unemployment and hardship. Further­ which goes to the heart of Zionism. We have friendly to their cause. An editorial in Davar, forgotten. The Yishuv had not faced such more, it established roots in the area of social come here to reach a goal, and work is the the workers' daily, praises him for voicing despair in the modern period. Response in welfare which became more progressive with means to that goal.'7 concern during the crisis.2' In September 1927 providing residual or institutional programs time, though not universal even with the He added: when the employment situation was still criti­ was not forthcoming. No clear policy either by creation of the state. cal he noted, the question of unemployment is not only a the Zionist organization or mandatory govern­ Mishan was established in the early decade humanitarian question; a question of morali- It is assumed that the Zionist organization ment emerged. It was left to the Jewish labor of the thirties, only three years after the diffi­ will continue to use every endeavor to expe­ 14 Geora Lando, Kuntras, Vol. 20, No 4, federation to create its own program known as cult economic crisis of the fourth aliya. In dite the process of recovery by procuring the January 15, 1927, p. 7. Mishan (lit. to lean on). 1931 members of the Tel Aviv labor council introduction of fresh capital and its invest­ 15 Ibid., Ben Gurion, Ha-Histadrut, Vol. 13. called for support recognizing, perhaps more ment to sound productive undertakings. 22 Statement of Policy Presented by the President 6 ' Ibid., Executive Report to the Third National of the Zionist Organization and the President of the than ever, the need for unemployment assist­ Assembly of the Histadrut, Vol., 13. '8 Ibid., p. 10. Zionist Executive to the 15th Congress, Basle, ance. As one member put it, "We have sinned '7 Ben Gurion "Lemilchama B'choser Avodah" '9 Ibid., Ben Gurion, "Lemilchama," pp. 10-11. September 2, 1927. Bachdruerci, Emil Birkhauser a grave sin in not paying sufficient attention to (War Against Unemployment), Kuntras, Vol. 14, 20 Ibid., pp. 11-12. and Co., Basel, pp. 12-14. our members. "24 No., 17, 1927, p. 7. 21 Davar, April 25, 1926. 23 Ibid., Gilad, pp. 229-230. 24 Yosef Ulizila, Mishan, Histadrut, 1956, p. 19.

358 359 The aim of Mishan goes to the heart of different periods men and women of the mutual aid. It was Ben Gurion who stated its Yishuv turned to Mishan for assistance. The underlying philosophy: "We are responsible economic crisis of 1938-1939 found Mishan each to his brother and today is our guarantee besieged with requests for aid. A rather planted four decades earlier, when the Yishuv for tomorrow."25 The uncertainty of unem­ touching letter from the Greater Parents com­ ployment and hardship faced the Yishuv as a mittee of Tel Aviv primary schools read whole and consequently, Ben Gurion added, More than five thousand children within our "all of us are liable to be on the receiving schools are confronted with hunger and a end."26 The unpredictability and instability of large percentage lacks decent clothing. 30 future times can be countered by investment in Similar pleas came from a broad range of the present. Ben Zvi elaborated by stating that schools and institutions. Mishan was neither a loan fund based on eco­ The first director of the department of social nomic principles, nor a fund formulated on welfare in the Yishuv, Henrietta Szold31 was philanthropic principles. Rather, mutual aid, somewhat critical of Mishan's varied activi­ joint responsibility and a "moral stand" by ties. She noted: the giver and recipient were emphasized. The I thought that Mishan was an institution former contributes with open cordiality, the which distributed loans and its main task to latter returns payment when possible.27 assist those who were unemployed. Lately The original by-laws of Mishan were quite however I noted that I was wrong. The goal is specific, selective and often quite regressive. to convert it to a department of social Acquiring a trade, procuring work tools and welfare.^2 returning people to the work force were given What indeed started as a loan fund for the preference to any other assistance. Further­ unemployed was later converted into grants- more, an individual could not receive aid if a in-aid and eventually into a social service net­ member of his family was employed. Periodic work of significant proportions. checks by Mishan to determine the worker's With the creation of the State of Israel eligibility was common practice.28 attempts to seek continuity in the form of Mishan operating as the welfare arm of the legislation for the unemployed failed. Efforts unemployment fund explains its rather regres­ by the Kanev commission to include provisions sive features. A member requesting aid had to for unemployment insurance in the framework receive approval and show cause that such aid of an overall welfare program did not materi­ was justified. A potential recipient had limited alize. The government was determined to seek power of negotiation and what was viewed as a productivity in building the new state and to right was often challenged by the board. discourage dependency through assistance. 33 As Mishan became more autonomous its In the Spring of 1970, Israel's Parliament policies became more liberal. In time unem­ passed legislation requiring the payment of ployment assistance would comprise only one unemployment insurance. A further step in the facet of its services. Loans gave way to grants; 30 Mishan, Labor Archives, 1439, April 6, 1939. food supplies were purchased at reduced rates; 31 Henrietta Szold, Architect of Hadassah, found­ free clothing was distributed; newcomers were er of Youth Aliya, was also responsible for given free education and housing.29 During transferring health and educational activities from 25 Mishan, Labor Archives, 251, IV, Tel Aviv, the World Zionist Executive to the Palestine No Date. Committee. This brought about the establishment of 26 Ibid. the Department of Social Welfare created in 1931. 27 Mishan, Agudat Ovdim Leezrach Haddit, Tel Miss Szold was its first director. Aviv, Achdut Press, 1937, p. 15. 32 Mishan, Labor Archives, 1939, April 6, 1969. 28 Ibid., Mishan, Labor Archives, p. 251. 33 Abraham Doron, The Controversy over Social 29 Mishan, Labor Archives, Document 251, IV, Security 1948-1953, Hebrew University Press, July 1747, 1938. 1975, pp. 1-50.

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