The labor federation organized a mass general strike in September last year in response to the Israeli government’s failure to secure a deal with Hamas.
Several senior officials from Israel’s largest labor federation were arrested by police early on Monday, including chairman Arnon Bar-David, on suspicion of bribery, fraud and breach of trust, money laundering, and tax offenses, according to Israeli media reports.
Several senior officials from the Histadrut, the national labor federation, including chairman Arnon Bar-David, have been arrested on suspicion of corruption and fraud.https://t.co/T08YMxsIZh
— The Jerusalem Post (@Jerusalem_Post) November 3, 2025
The arrest of the Histadrut labor federation chief, along with his wife and over 400 others, follows a two-year undercover corruption investigation described by police as exposing “one of the most serious scandals in recent years,” Ynet News reported.
‘Hand in Hand’ Probe
The report stated that the probe, called “Hand in Hand”, involves around “350 people connected to labor committees and public-sector unions.”
It also stated that eight suspects were arrested and 27 others detained for questioning, including two city mayors, in coordinated raids on 55 homes and municipal offices across six localities.
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The Jerusalem Post cited Israeli public broadcaster KAN as reporting that over 433 people were detained, with others being questioned as well.
The report noted that Histadrut is an umbrella organization of Israeli labor unions representing around 800,000 members, “including public-sector employees, municipal workers, and employees from various industries and unions.”
Insurance Businessman
According to Ynet, police suspect that a prominent businessman in the insurance sector, believed to be a close associate of Bar-David, used his ties within the Histadrut “to distribute lucrative jobs and appoint allies to key union and board positions across local authorities, government-owned corporations, and major companies.”
Police claim the insurance agent “leveraged his connections to secure insurance contracts with labor unions and municipalities, while offering senior roles in return — including positions at Keren Kayemeth LeIsrael (KKL) and Israel Railways,” the report stated.
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The businessman, who is among those detained, also allegedly “spent illicit funds on luxury restaurants, travel, and personal expenses.”
A police official was quoted as saying that the case “is one of the most severe cases of corruption we’ve encountered — a network connecting business figures, union leaders, and elected officials.”
Municipalities, Organizations Raided
According to Israel Hayom, police carried out searches in several municipalities as well as at “Israel Railways, El Al Airlines, the Wingate Institute, and Keren Kayemet LeIsrael (Jewish National Fund).”
The report stated that investigators describe a “give-and-take” system “in which heads received personal favors, while the agent’s companies reaped massive financial gains, tens of millions of shekels annually.”
Histadrut reportedly said in a statement that it is cooperating with authorities, and “are confident that investigation will prove that no wrongdoing was committed.”
The labor federation organized a mass general strike in September last year in response to the Israeli government’s failure to secure a deal with Hamas for the release of Israeli captives held in Gaza at the time.
In February 2023, Israeli media quoted Bar-David as saying Israeli Prime Minister Benjamin Netanyahu “brought disaster upon Israel” regarding the October 7 Resistance operation. He called for new elections, reportedly saying, “If I were prime minister, I would resign.”
(PC, Israeli media reports)
