Chapter 13 expands on the idea of incongruence between political community and labor force by presenting a historical overview of the relationship between Israel and the Palestinians in the field of labor and worker representation. Beginning with Mandatory Palestine, through the establishment of Israel in 1948, the territorial conquest of 1967, the Oslo Accords, and the ongoing occupation, the chapter underscores the Histadrut’s “nationalist” role and charts the incremental incorporation of Palestinian citizens and non-citizens as laborers, but with limited access to political institutions, including the Histadrut and Labor Party. It closes by overviewing Israel’s textile industry as epitomizing the development of the economy according to the requirements of the Jewish state and its relations with the Palestinians. This constitutes the basis for the assertion, explored in the subsequent chapter, that since 1948 Israel has increasingly struggled with the conflicting imperatives of economic incorporation and political exclusion of Palestinians.