Israeli union leader wins Labour leadership contest

Fiery union leader Amir Peretz won a stunning victory today over elder statesman Shimon Peres in the race to lead Israel’s Labour Party – a vote that could bring down Prime Minister Ariel Sharon’s shaky coalition and propel the country into early elections.

The dramatic upset revolutionised Israel’s political landscape, with Peretz, a Moroccan immigrant whose father toiled in a kibbutz factory, taking over Labour, the bastion of Israel’s eastern European elite.