Israel's Public Transport Crisis: Forced Retirement of Experienced Drivers Amid Severe Shortage

Israel's public transportation sector is experiencing one of its most severe crises in history, with a shortage of at least 5,000 bus drivers crippling service delivery across the country. The deficit has resulted in cancelled routes, chronic delays, and overcrowded vehicles affecting millions of daily commuters. Despite this acute shortage, bus company Egged has initiated a controversial process of forcing experienced, pension-eligible drivers into early retirement—even when they wish to continue working.

Several veteran drivers have documented their experiences of being placed on mandatory retirement lists without consent. Meir Ashor, a 40-year driver with an exemplary safety record, was repeatedly pressured to retire despite explicitly stating his willingness to continue. When he reached age 64, Egged notified him of his forced retirement and threatened legal action when he refused. After years of resistance, Ashor reluctantly accepted early retirement at a reduced pension of 70 percent of his base salary. Other drivers reported similar experiences: one 63-year-old was forced out after 40 years of service; another retired at age 58 after 35 years, claiming false traffic violations were cited against him during his dismissal hearing.

The root cause is a 2018 financial agreement between Egged and the Israeli government aimed at dismantling the company's monopoly and opening the public transport sector to private competition. To compete with cheaper private operators, the government demanded Egged drastically reduce labor costs by eliminating the high wages and benefits accumulated by veteran "first generation" drivers over decades. A new unified pay scale based primarily on seniority replaced previous wage components, promotions, and bonuses.

Israel Ganon, chairman of the drivers' union affiliated with the Histadrut, condemned the strategy, arguing it makes no sense to replace experienced, loyal, and safety-conscious veteran drivers with cheaper, younger, inexperienced staff—especially when the state subsidizes companies that make such decisions. Union leaders contend that the early retirement initiative is motivated by cost-cutting rather than justified performance concerns. Egged has rejected these allegations, claiming that most departures occurred voluntarily through collective agreements offering favorable retirement terms, and asserting that it values experienced drivers as essential assets.