
Public sector union officials are set to issue a formal declaration of a "labor dispute" on Tuesday. The declaration is a step that could develop into a general strike within two weeks time, according to spokespersons of the Histadrut, Israel's largest nationwide union. The dispute centers on the union's demand that the Finance Ministry approve a pay-raise for public sector workers.
Negotiations between the Histadrut and the Finance Ministry broke off on Sunday after only 15 minutes, as the sides realized that they were not going to find common ground.
Chairman of the Histadrut, Ofer Eini, said of the aborted negotiations, "The Histadrut is not demanding anything from the Finance Ministry captains other than that they live up to calculations that they themselves made regarding the salary devaluation. In 2006, the
Negotiations between the Histadrut and the Finance Ministry broke off after only 15 minutes.
salaries of the Prime Minister and other ministers, who are also public sector employees, were updated by about 11%. That is, the Finance Ministry calculated and found a figure regarding salary devaluation, so why not let those employees earning the least have that which was received by those earning the most?"
Eini also mention that, in 2003, the Histadrut agreed to a temporary pay cut of up to 17% in a measure called "encouraging growth." The cuts were a deal worked out with then-Finance Minister Binyamin Netanyahu as part if his economic reform efforts. "Now," Eini continued, "the Finance Ministry is displaying fantastic figures of economic growth, but suddenly, when the donation of the workers is no longer needed, they are dismissively ignored and there is no agreement to add even a shekel to salaries."
Finance Ministry officials, on the other hand, claim that there has been no erosion in public sector salaries. They also pointed out that fulfilling the Histadrut demands would cost the state an estimated NIS 10-12 billion.
Negotiations between the Histadrut and the Finance Ministry broke off on Sunday after only 15 minutes, as the sides realized that they were not going to find common ground.
Chairman of the Histadrut, Ofer Eini, said of the aborted negotiations, "The Histadrut is not demanding anything from the Finance Ministry captains other than that they live up to calculations that they themselves made regarding the salary devaluation. In 2006, the

Negotiations between the Histadrut and the Finance Ministry broke off after only 15 minutes.
salaries of the Prime Minister and other ministers, who are also public sector employees, were updated by about 11%. That is, the Finance Ministry calculated and found a figure regarding salary devaluation, so why not let those employees earning the least have that which was received by those earning the most?" Eini also mention that, in 2003, the Histadrut agreed to a temporary pay cut of up to 17% in a measure called "encouraging growth." The cuts were a deal worked out with then-Finance Minister Binyamin Netanyahu as part if his economic reform efforts. "Now," Eini continued, "the Finance Ministry is displaying fantastic figures of economic growth, but suddenly, when the donation of the workers is no longer needed, they are dismissively ignored and there is no agreement to add even a shekel to salaries."
Finance Ministry officials, on the other hand, claim that there has been no erosion in public sector salaries. They also pointed out that fulfilling the Histadrut demands would cost the state an estimated NIS 10-12 billion.