Peres loses Labour vote to union chief

A DRAMATIC upset in the Labour Party’s leadership contest has revolutionised Israel’s political landscape, after a fiery union leader notched a surprise win over Shimon Peres.

The loss by the elder statesman could endanger the country’s shaky governing coalition.

Amir Peretz has promised to pull Labour out of Prime Minister Ariel Sharon’s government, raising the likelihood of early elections. The defeat also could spell the end of Mr Peres’s distinguished, six-decade political career.