The Histadrut Labor Union has threatened to call a nationwide government strike in two weeks if a new workers' fund tax is not repealed.
The threat was made in response to Finance Minister Roni Bar-On's new tax plan that he revealed Wednesday. Bar-On announced a drop in taxes for both companies and individuals, and said that it would be paid for by the cancellation of the tax exemption on payments to some employee pension funds.
Shortly afterwar Bar-On's press conference, Histadrut Labor Union chief Ofer Eini convened an urgent one of his own in which he declared that if the tax exemption is not repealed, the strike would be called in two weeks' time. The decision to do so was made unanimously by the Histadrut's Coordination and Performance Committee.
The offices to be affected by such a strike include the Ministries of Education, Interior, Transportation, Foreign Affairs, Welfare, Defense, and Health, as well as the Prime Minister's Bureau, the Tax Authority, Israel Lands Authority, Bank of Israel, the government hospitals, the Israel Broadcasting Authority, the National Insurance Institute, Israel Aircraft Industries, the Postal Authority, the Electric Company, Bezeq, Ben Gurion International Airport, the ports of Haifa, Ashdod and Eilat, Israel Railways, and more.
Eini said he was surprised by Bar-On's intent to revoke the fund payment exemptions. "I have the feeling that the Finance Ministry clerks threw him a curve ball. There should be no connection between tax and reforms; the employees have an agreement with their employers, and the government has no business mixing in... The funds do not affect the top earning classes, but only the simple people. I'm waiting for Bar-On to say he made a mistake, and that will be that."