Real wages are expected to decline five to six percent in 2009, according to an analysis of salaries in the first quarter of the year made public Tuesday by the Israel Manufacturer's Association. The first-quarter reduction was 2.1 percent.

Dafna Aviram-Nitzan of the association's economic research department says businesses were forced by the recession to take a number of steps, from cutting down on overtime and the length of shifts to cutting salaries of staff and management. She says that in recent months, some businesses have gone to a shorter work week and collective vacations.