Treasury officials move toward wage freeze

Ministry of Finance Budget Director Ram Belnikov: A public sector wage freeze plan should be viewed positively.

"I believe that Ilan Levin's plan should be viewed favorably", Ministry of Finance Budget Director Ram Belnikov said today. Belnikov was speaking about the plan by new director of wages Ilan Levin to freeze some public sector wages at the Ministry of Finance's weekly meeting.

According to current agreements with the Histadrut (General Federation of Labor in Israel), salary upgrades in the public sector are to come into effect at the end of the year, including a CPI-linked 4% increase for management, a 5% increase for the entire public sector, as well as bigger increases for teachers, university lecturers, and doctors.

Yesterday, "Globes" reported that Levin's plan to freeze some wages was contested in the Ministry of Finance, even to the point of anger for some officials, as Levin apparently talked to some Histadrut officials in formulating the plan.

The plan is expected to save the government NIS 1.5-3 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on December 22, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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