Income Tax Authority workers' raise in dispute

Each party insists that it should determine the distribution of the pay hike among the employees.

Sources inform ''Globes'' that the Ministry of Finance is reviewing the agreement with Income Tax Authority workers committee for a NIS 30 million pay hike. Two months ago, the ministry and workers committee signed a deal for a pay hike for Income Tax's 3,200 employees, after a two-day strike.

Ministry of Finance officials are now saying that the economic crisis may have rendered the agreement irrelevant.

The result has been a new break between the Ministry of Finance's top officials and the employees of its tax division. In addition, each party insists that it determine the distribution of the pay hike among the Income Tax Authority employees.

Ministry officials and the Income Tax Authority workers committee agreed on a NIS 27 million pay hike, but a dispute then arose whether the amount included employer contributions or not. The Ministry of Finance said that it did; the workers committee said that it did not. After Histadrut chairman Ofer Eini, who was once chairman of the Income Tax Authority workers committee, intervened in the matter, the pay hike was increased to NIS 30 million.

Published by Globes [online], Israel business news - www.globes-online.com - on February 10, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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