[1] In 1920, Third Aliyah immigrants founded Gdud HaAvoda and demanded a unified organization for all Jewish workers, which led to the establishment of the Histadrut.
More important than the 1917 American Federation of Labor (AFL) resolution recognizing "the legitimate claims of the Jewish people for the establishment of a national homeland in Palestine on the basis of self-government", was the grassroots campaign to finance Histadrut land purchases, infrastructure development and the establishment of farm cooperatives.
Jewish garment workers in the US in the early 20th century looked more to local improvements than the promises of Labor Zionism.
[6] The Histadrut became one of the most powerful institutions in the state of Israel, a mainstay of the Labour Zionist movement and, aside from being a trade union, its state-building role made it the owner of a number of businesses and factories.
Hyperinflation saddled its business empire with enormous debts, and slow economic growth exposed its inefficiencies.
The loss of revenue generated from Clalit's health insurance premiums and union dues caused an enormous decline in the Histadrut's resources, and it was forced to sell off valuable real estate assets to survive.
Following its support of the 2011 Israeli social justice protests, on February 8, 2012, Histadrut called a general strike in support of lower-paid subcontracted, and unorganized workers, negotiating with both the government and private employers on their behalf, demanding that the subcontracted workers be hired directly and be offered the pay and benefits granted to regular employees.
[19] The strike was called off on the same day after Netanyahu announced he will be entering negotiations with the opposition regarding the judicial reform and halt the legislation.
[20] Several days later, a report by journalist Michael Shemesh alleged that the strike was coordinated with the Prime Minister's office in order for Netanyahu to be able to apply pressure on his coalition members to halt the legislation.
[21] The initial aim of the Histadrut was to take responsibility for all spheres of activity of the worker's movement: settlement, defense, trade unions, education, housing construction, health, banking, cooperative ventures, welfare and even culture.
[23] According to Zeev Sternhell[24] Ben-Gurion's exclusive commitment to this goal is illustrated by a December 1922 quote: [...] Our central problem is immigration ... and not adapting our lives to this or that doctrine.
In 1924 the Histadrut's Office for Public Works collapsed and went bankrupt, and in 1927 the same happened to its successor, the privatised Solel Boneh.
It did what the Zionist Executive wanted, but was unable to do: absorb immigrants and organise the agricultural settlement, defense and expansion into new areas of production.
[25] According to Tzahor, while the Histadrut focused on constructive action, its leaders did not "abandon fundamental ideological principles".
The Histadrut has been criticized by European trade unions and international human rights groups over its failure to represent migrant workers, considered to be the most maltreated employees in Israel.