No progress has been made in the negotiations for wage agreement in the public sector. Minister of Finance Moshe Kahlon is insisting that any pay increment have a differential component that will reduce the wage gaps between employees. A three-hour meeting between the Ministry of Finance director general and the Histadrut (General Federation of Labor in Israel) and trade union leaders today ended without results. Another meeting will take place tomorrow under the shadow of the Histadrut's threats of a general strike in the coming days.
A senior source involved in the negotiations told "Globes" today, "If the Histadrut continues its adherence to the percentages method, which strengthens the well-off workers in the economy, a strike is very likely. If we give in to the threat of a strike, it means that we have contributed to widening the gaps in the economy. As far as we're concerned, the Histadrut can go on strike for a year."
The source continued, "We insist that regardless of the size of the increment, any increment has to be provided differentially, so that it narrows the gaps between workers with low pay and workers with high pay."
The new wage agreement for workers in the public sector will apply to 2013-2018, including pay increases retroactive to the day on which the agreement takes effect, plus one-time compensation for the delay in the salary hike. In the preceding wage agreement, the workers received a 6.25% raise spread over the 3.5 years of the agreement, and NIS 2,000 in one-time compensation for each worker.
In a talk with "Globes," Histadrut chairman Avi Nissenkorn hinted that the Histadrut would begin a general strike on Wednesday if no agreements are reached in the next two days in negotiations between the Ministry of Finance and the Histadrut and workers' organizations. "Workers in Israel can't make ends meet," Nissenkorn declared. "We're willing to talk (negotiate, A.B.) tomorrow and the day after tomorrow. We'll talk until the last minute if necessary in order to avoid a strike, but we won't compromise on the workers' rights. The Ministry of Finance apparently has a lot of time, but the workers can't wait. Three years without an agreement is insufferable."
Published by Globes [online], Israel business news - www.globes-online.com - on December 20, 2015
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