Public Transport Operators Sue Ministry Over "Aggressive" Fines
Translated & summarized from Ice by baba
Fifteen Israeli public transport companies are suing the Ministry of Transportation for tens of millions of shekels, alleging "aggressive" and unilateral changes to penalty and offset mechanisms that unfairly penalize them for delays caused by factors beyond their control.
The story in 5 lines · by baba
- 15 Israeli transport firms sue Ministry of Transportation.
- Companies demand return of 31.1 million shekels in deducted funds.
- Dispute centers on increased fines and refusal to recognize delays.
- Operators cite "aggressive conduct" and external factors for service deviations.
- Lawsuit challenges Ministry's oversight and fine application.
Approximately 15 public transportation companies in Israel, including Electra Afikim, Metropolin, Kavim, and Superbus, have filed a major lawsuit against the Ministry of Transportation in the Jerusalem District Court. The companies are protesting a unilateral change in the penalty and financial offset mechanism applied to them, demanding the cancellation of offsets made in recent years and the return of tens of millions of shekels.
According to data revealed by Calcalist, the lawsuit seeks the return of 31.1 million shekels that were deducted from the companies, plus 3.6 million shekels in interest. The dispute escalated in 2024 when the Ministry began fining operators 10,000 shekels for each reporting deviation, a significant increase from the previous maximum of 1,000 shekels. Furthermore, the Ministry has stopped recognizing traffic jams, accidents, and protests as exceptional events, imposing heavy fines for delays caused by these incidents.
The companies sharply criticized the Ministry's policy in their lawsuit, stating, "The operators do indeed bear the agreed-upon compensation monthly, in enormous sums, in submission and silence, despite the fact that most deviations from the service level result from fundamental problems plaguing the industry for which they are not responsible at all." They added, "It is evident within the operational control that there is a trend and an utterly unrestrained aggressive conduct."
The Ministry of Transportation stated that its response would be submitted in court. This legal proceeding tests the complex relationship between the state and the private companies operating public transportation in Israel. The district court's decision is expected to define the boundaries of the Ministry of Transportation's oversight and the application of fines in the sector, directly impacting the financial stability of the operators.
