Sep.19, 2012 | 1:26 AM–The problems facing part of the private sector are receiving lots of attention these days. But the public sector faces even larger problems, even though they are better camouflaged – when you don’t need to produce an end-of-the-year audit of costs and revenues and when you rely on the state budget, you can continue with business as usual.

Israel’s public sector is inflated, wasteful and extremely inefficient. Hundreds of thousands of workers have tenured positions that don’t allow for change – not even the movement of a worker from one job to another within a ministry. Certainly there are no dismissals. In the public sector, workers’ committees believe they must defend all workers; this approach doesn’t let managers manage and impairs service to the public.

The situation at large government companies is worse than at ministries. Workers employed by the electric company, the port authority, the airport authority and Israel Military Industries enjoy high salaries; these firms swell with excess staff and are plagued by nepotism…Read More>>

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