Netanyahu pledges to raise minimum wage to NIS 5,000

Benjamin Netanyahu
Benjamin Netanyahu

Such a measure by a transition government requires approval from the Attorney General.

Prime Minister and acting Minister of Finance Benjamin Netanyahu has ordered the Ministry of Finance to allow a rise in the minimum wage to NIS 5,000 a month, Histadrut (General Federation of Labor in Israel) chairman Avi Nissenkorn said today in a tripartite meeting this morning in the Prime Minister's Office. Manufacturers Association of Israel president Zvi Oren also attended the meeting.

A check by "Globes," however, shows that Netanyahu's statement has no practical significance.

The Ministry of Finance today called on the Histadrut to renew the negotiations that were halted just before the signing of an agreement to raise the minimum wage by the Histadrut and the Manufacturers Association. Sources inform "Globes" that Netanyahu met with Ministry of Finance officials before the meeting, who raised objections to the agreement signed by the Histadrut and the Manufacturers Association on December 3.

Senior Ministry of Finance officials told Netanyahu that they regarded the signing of the agreement as an underhanded attempt by Nissenkorn to bypass the usual legislate procedure for raising the minimum wage through an expansion order. They asserted that the minimum wage had always been raised through legislation. The question of whether a transition government can raise the minimum wage through an expansion order is currently awaiting a ruling by the Attorney General.

Given the current situation, it appears that that the statements made by the Histadrut following the Netanyahu-Nissenkorn-Oren meeting that the first installment under the agreement for raising the minimum wage, which raises the minimum wage from NIS 4,300 to NIS 4,650, will take place in April are unfounded.

The agreement between the Histadrut and the Manufacturers Association was signed hours after the announcement that Minister of Finance Yair Lapid had been fired was made. Minister of Finance Director of Wages Kobi Amsalem refused to sign the agreement, due to the disputes still remaining between the parties. Despite Netanyahu's statement this morning, it still remains to be seen whether Amsalem will sign the agreement, and whether the Attorney General will approve an expansion order for all employees in Israel in the framework of a transition government.

Nissenkorn said in response to Netanyahu's announcement, "I welcome this important measure. Hundreds of thousands of families will begin feeling the change in their paycheck in April. We now have to make sure there is no delay in implementing the agreement that will help 700,000 workers in their daily struggle for existence. Raising the minimum wage to NIS 5,000 is important news for Israeli society. The Histadrut is committed to continued measures to narrow the gaps in Israeli society."

Published by Globes [online], Israel business news - www.globes-online.com - on December 21, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

Benjamin Netanyahu
Benjamin Netanyahu
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