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Israeli Union Leader to Challenge Peres

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<i> Reuters</i>

Israel’s most prominent trade-union leader announced Thursday that he will challenge Shimon Peres for leadership of the main opposition Labor Party.

Yisrael Kessar, 60, heads the powerful Histadrut labor federation, which controls a quarter of Israel’s economy through ownership of many large companies.

“At the moment the leadership loses the support of the majority of the members, the (Labor) Party is paralyzed . . . (and) the Likud, despite its failure in every area, has succeeded to overcome us,” Yemeni-born Kessar told supporters in Tel Aviv. The right-wing Likud is Israel’s dominant party.

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Peres, 68, has lost or drawn in four general elections.

A vote on the leadership is expected early next year. National elections are due to take place next November.

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