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As that is a statement put out by Chabad, I'm hesitant to argue, after all, they probably know better than anyone else how to define themselves. However, I really think that their statement is simply one of semantics. According to the website MyJewishLearning.com, "the word "haredi" is a catchall term, either an adjective or a noun, which covers a broad array of theologically, politically, and socially conservative Orthodox Jews, sometimes referred to as "ultra-Orthodox." What unites haredim is their absolute reverence for Torah, including both the Written and Oral Law, as the central and determining factor in all aspects of life.... Certain groups of haredim, notably, but not exclusively, members of Chabad Lubavitch, do make contact with non-haredi Jews for the purpose of kiruv--encouraging others to adopt more stringent religious observance."2
Is Chabad "Ultra-Orthodox?"Chabad is referred to as an "Orthodox" Jewish movement because it adheres to Jewish practice and observance within the guidelines of Talmudic law and its codifiers. The prefix “ultra” is commonly used by media broadcasters, but it has no practical meaning. It is used to marginalize a group or to portray them as extremists battling with extremists of other religions.
Mother Theresa was never called “ultra-Catholic.” Albert Schweitzer was never “ultra-Calvinist.” Doctors Without Borders are not ultra-militant New-Agers. When a Chabad couple travel to a community, they are not interested in converts, in battles, or in brainwashing youth. They are only interested in sharing their Shabbat tables and the heritage that belongs to every Jew. A Chabad House is a “Jewish Center” and a Chabad rabbi is a rabbi, period.
If you hear Chabad described in the media as “ultra-Orthodox,” pick up the phone or fire off an email and complain. Tell them Chabad is a Jewish movement, without any labels, and they should describe it as such.1
Ami Steinberger, a Jewish Press blogger, explains that "“Ultra-Orthodox” is the English term that describes a large group of Jews, whose religious practice tends to be very strict and whose dress remains very conservative, reminiscent of Eastern Europe before modernity. Many English speakers are familiar with another term that describes this group – Haredim..... [The term Haredi is further explained as meaning] "those who tremble before the word of God."3
I completely understand why Chabad, who tends to define themselves as a movement and a philosophy, eschews the use of the term "ultra-orthodox." They don't want to appear threatening. Under the heading "Questions People Ask" in the handbook for outreach workers, it's written that they find labels to be problematic because they divide people. To Chabadniks, one is simply a Jew. However welcoming and pluralistic this sounds, the late Lubavitcher Rebbe, Menachem Schneerson, is cited as having stated that "the doctrines and ideologies of the Reform and Conservative movements, can only be classed in the category of heretical movements which have plagued our people at one time or another, only to disappear eventually, having no basis in our everlasting Torah, the Torah of truth, the living Torah, Toras Emes, Toras Chaim."4
Rather than divide people by labels, it is better to get rid of the labels that the Chabad movement finds problematic. To them, all non-orthodox Jews appear to be equal as (non-orthodox) Jews. However, to Lubavitchers, Chabad is Chabad, and even though they may fall under the Hebrew term haredi, they never want to be called by the English translation "ultra-orthodox."
3. Steinberger, Ami. Ktzat Ivrit. The Jewish Press. com Blogs. January 30, 2013. http://www.jewishpress.com/blogs/ktzat-ivrit/in-hebrew-the-meaning-of-haredi/2013/01/30/
4. On Reform and Conservative Judaism. TrueJews.org. http://truejews.org/Igud_Historic_Declaration.htm