 During Labor's stint in the Ariel Sharon government between January and November 2005, Ben-Menachem was re-appointed Deputy Minister of Housing and Construction.After losing the slot on Labor's list reserved for the representative of poor neighbourhoods to Yoram Marciano, he left the party and joined Kadima.He lost his seat in the 2006 elections and became head of the Kadima faction in the Histadrut.