AL-AZARIYA, WEST BANK - The Israeli government has announced it will allocate $100 million to counter a growing international boycott against Israeli organizations operating in the Palestinian territories.
The issue was highlighted recently by a debate over the maker of a popular soft-drink machine operating in the disputed territories.
A chilly dawn is breaking over al-Azariya, outside Jerusalem. Workers gather in the dark waiting for the bus to take them to their jobs at the SodaStream factory in the nearby Jewish settlement, Ma'ale Adumim.
SodaStream builds machines that make seltzer, or soda water, for personal use. The machines are popular. But the workers are worried.
Jewish settlements in the West Bank are considered illegal by much of the international community. As a result, Israeli enterprises operating here are the target of a growing movement called Boycott-Divestment-Sanctions (BDS).
Ahmed—who does not want his real name used—arrives early to take the first bus. He's been at SodaStream for eight months and likes his job. He says it pays three times what he would earn working for a Palestinian company and that conditions are good. However, production is down and his work hours have been cut.
"I do not support this boycott," he said. "It's not good because the workers are Arabs and there will be no jobs and we will sitting at home. Secondly, it is the big people who are fighting, not the workers, the young people."
SodaStream says its employs more than 500 Palestinians as well as Israeli Jews and Israeli Arabs.
"They work together here," said C.E.O. Daniel Birnbaum. "We have about 1200, 1300 people working in this facility in harmony and peace. And we are very proud of being able to be here and to contribute in our way to the co-existence and hopefully to the peace in this region."
SodaStream faces growing competition from large, multi-national beverage companies, which have been interested in the growing popularity of the company's product.
At the same time, the company is under growing pressure from the BDS movement which is making gains.
A large Danish pension fund, German banks and several U.S. academic groups recently announced they were severing ties with Israeli partners that operate in the territories.
In addition, there is a growing movement to require special labels on Israeli exports from the Palestinian territories. This would make it easier for consumers to boycott Israeli products made in the Palestinian territories.
Israeli news media reported Tuesday that several multinational construction companies have withdrawn their bids to build two new ports in Israel, citing pressure from domestic shareholders and activists or a fear of hurting business interests in the Arab world.
These developments worry the Israeli government.
Finance Minister Yair Lapid last month told an international conference in Tel Aviv that a European boycott would reduce Israeli exports by one-fifth, shrinking the Israeli domestic product by several billion dollars—or more than one percent—causing the loss of 10,000 jobs. Europe is a major partner, accounting for about one-third of Israel's foreign trade.
Israeli Prime Minister Benjamin Netanyahu on Monday told a gathering of world Jewish leaders in Jerusalem that any talk of a boycott in Europe was an outrage and called its advocates "classical anti-Semites in modern garb."
Invoking the boycotts of Jewish businesses in Nazi-led Germany prior to World War II, Netanyahu said, "In the past, anti-Semites boycotted Jewish businesses and today they call for the boycott of the Jewish state….I think we have to fight them."
Palestinian organizers of the BDS movement say they are working with various groups, including Israeli ones, to pressure the Israeli government to change its policies.
Some groups choose to boycott only products made by Jewish settlers in the Palestinian territories. Others advocate a general boycott of all Israeli products.
The movement has also succeeded in pressuring some international entertainers to cancel performances in Israel.
The Jewish-American actress and singer, Scarlet Johannson, recently had to choose between her role as a celebrity ambassador for SodaStream and for the British charity group, Oxfam.
Oxfam supports the BDS movement against Israel. Johannson resigned from Oxfam and said the boycott works against peace and understanding between Israelis and Palestinians.
Eyeing long-term gains
Many of the Sodastream's Palestinian workers are too worried to speak to the media. They say privately that they oppose the Jewish settlements but feel the boycott unfairly targets their families and livelihoods.
Mahmoud—again, not his real name—has worked at SodaStream for several years, even though he has a degree in banking and finance.
"We have no other work but at Sodastream," he said. "If there was another job outside the settlements, we would work there. But all of Palestine is our land. So we ask them to leave all the land, not just the settlement."
Omar Barghouti, a local BDS leader, acknowledges the movement hurts Palestinians, but he says Palestinians may have to suffer in the near-term in order to obtain their rights in the long-term.
"We are under Israel's control," Barghouti said. "We'll suffer as Israel suffers from the boycott. But the entire Palestinian civil society has said we are ready to pay that price to gain freedom, justice and equality."
His words offer little consolation to the workers from al-Azariya who, as the sun rises, board the bus for SodaStream, hoping to return in 12 hours after a full shift, rather than in a few hours following a work-day shortened by sanctions.