The workers of the Chevra LeOtomatzia Shel Hashilton Hamekomi
(Local Authorities Automation Company) are carrying out a
wildcat strike at the Jerusalem Municipality, wreaking havoc
with the computer system. This high-tech sabotage is delaying
property tax collection through standing bank orders,
preventing bills for 2006 from being sent and even last
month's salary slips for municipality workers had to be
handwritten—all because the contract between the City
and the company ended and another computer company won the
tender. So far the wildcat strike has cost the City NIS 60
million ($13 million).
The Automation Company, the largest software house providing
services for local governments, has been developing and
implementing advanced, innovative computer systems at local
authorities, including full support services, for over 30
years. "The Automation Company has been providing smart
computer solutions that make the service to the citizen and
the management of the authority more efficient and faster,"
says a spokesman for the company, which is controlled by the
Interior Ministry (40 percent) and the Center for Local
Government (60 percent).
Several months ago Municipality Director Eitan Meir decided
to issue a new tender for computer services and "end the
Automation Company's monopoly" at the Municipality after it
provided services for three decades. Meir claims the
Automation Company charges exorbitant fees for the services
rendered and during a period of layoffs and cost cutting this
expenditure should be reduced as well. According to
Municipality officials the company demands NIS 17 million per
month ($3.7 million) in addition to the high fixed sum it
receives.
Even after the Automation Company tried to block the tender
in court, the Municipality included a paragraph in the tender
requiring the winner to hire the majority of Automation
Company workers, in order to provide for their continued
employment. "The Municipality felt an obligation toward the
80 workers and we wanted to continue the computer work
without interruption since the [Municipality] workers are
very familiar with the computerized systems," explained one
Municipality official.
The tender was won by MALAM Systems, which bid NIS 30 million
less than the other companies. At this point the Automation
Company decided to put a wrench in the works. Employees asked
the court to prevent MALAM's entry, but their request was
dismissed out of hand. According to Municipality officials
the Automation Company then began to sabotage the system by
removing operating files and passwords.
Meanwhile they kept MALAM employees from coming in to work.
The Municipality found a very original way to remove
Automated Company workers from the premises. Security guards
rushed into the office rooms in a panic telling everyone to
clear out because a suspicious object had been discovered.
They left — but the computer systems remain inoperable.
Without the basic operating files the 700,000 city residents
and 7,000 municipal workers are effectively being held
hostage by a company acting like a poor loser.
"As soon as the employees begin negotiations with MALAM over
transferring to the company, everything will work out," says
the Municipality, but blames the employees for their
unwillingness to conduct negotiations. "The Automation
Company is threatening the workers, saying anyone who
conducts negotiations with MALAM will lose all of his pension
rights. We are not their employer, we are a third party, but
the biggest casualty is the property tax bills, which were
supposed to get sent out at the beginning of December. A
total of NIS 60 million [$13 million] in standing bank orders
were not collected last month from residents' [bank]
accounts, property tax bills for 2006 have not yet been sent
out and those are only the direct damages."
