Union Boycott Forces KKL to Cancel Event, Wasting 1 Million NIS
A KKL employee appreciation event was canceled after union leader Israel Goldstein ordered a boycott, wasting over 1 million NIS. The move highlights a bitter dispute over efficiency reforms and workforce cuts.
More than 1 million NIS of public funds from the Jewish National Fund (Keren Kayemeth LeIsrael - KKL) have been wasted after an employee appreciation event scheduled for today was canceled. The cancellation followed a directive from the workers' union to boycott the gathering. The event was set to take place at the Shuni Amphitheater, featuring performances by prominent Israeli singers Shlomi Shabat and Pablo Rosenberg.
Yesterday afternoon, the head of the KKL workers' union, Israel Goldstein, sent an explicit message instructing employees not to attend. "We direct all of you to boycott the event and not take part in it," Goldstein wrote. Because the union announced the boycott only 24 hours before the show, management had no choice but to cancel it.
KKL Director-General Ilan Shohat sent an update confirming the cancellation, noting that the union's decision was made "with the clear knowledge that this decision would harm your status and dignity, and cause financial damage of over 1 million NIS due to the cancellation."
Efficiency Measures and Budgetary Disputes
The cancellation is the latest chapter in an ongoing conflict between the union and KKL's new management, which took office in January following the appointment of Eyal Ostrinsky as chairman. The dispute centers on efficiency and cost-cutting measures, alongside efforts to curb the influence of union leader Israel Goldstein, who is considered a powerful political figure within the Likud party.
Among other changes, KKL management decided to directly manage the 7 million NIS employee welfare budget, which was previously controlled by the union. The primary objective of the new administration is halting the growth of the workforce.
In 2025, KKL employed 1,244 workers. For 2026, professional staff requested Ostrinsky to approve 1,400 positions, but he agreed to authorize only 1,275. Management is currently drafting the 2027 budget, which projects a further decrease to 1,250 employees due to the retirement of veteran staff.
Rapid Headcount Growth and Rising Costs
The necessity to halt workforce expansion stems from an unusual surge in hiring in recent years, which drove up fixed expenses. From early 2023 until January of this year, KKL was chaired by Yifat Ovadia-Luski, also of the Likud party. During her tenure, she was unable to appoint a permanent director-general, leaving the organization under acting directors for nearly three years. Concurrently, the headcount surged.
Over a five-year period, KKL's workforce jumped by nearly 30%, from 953 employees in 2021 to 1,233 by the end of 2025. This rapid growth led to a 44% increase in the organization's fixed expenses, rising from 444 million NIS in 2021 to 640 million NIS in the recently approved 2026 budget. The bulk of this recruitment occurred under Ovadia-Luski, during whose term 220 new employees were hired. Sources within KKL state that Goldstein became highly dominant during this period, playing a key role in numerous appointments.
The Union's Position and Financial Realities
Because the boycott is not an official strike but rather a refusal to attend an after-hours voluntary event, KKL management cannot petition labor courts to compel employee attendance. In his letter, Goldstein argued that management "consistently chooses to sideline and ignore the workers' organization on a long list of substantive issues, including employee events and welfare." He added that the planned cuts to fixed expenses "constitute a direct blow to the workers."
In reality, fixed expenses for 2027 are projected to remain at 640 million NIS, identical to 2026. Adjusted for inflation, this represents a real-term cut of tens of millions of NIS. However, this reduction stems entirely from natural attrition and a new selective hiring policy implemented by the director-general, under which new staff are recruited with extreme precision. Working conditions and benefits will not be harmed. During a board meeting yesterday, Ostrinsky estimated that the average gross monthly salary of KKL employees is 25,000 NIS, making it one of the highest in Israel's public sector.
Responses
KKL management did not provide an official response.
Union leader Israel Goldstein stated in response:
"The KKL workers' union will continue to act decisively, day and night, to protect the rights of the organization's employees against an abusive management that operates out of narrow, political motives. The management's claims are entirely baseless and border on defamation. The authority for hiring lies solely with management, and any attempt to shift this responsibility to the union is factually incorrect. We will continue to represent the workers without fear."
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