The garbage is starting to overflow into city streets throughout Israel as the municipal workers strike enters its second day. Representatives of the Histadrut (union) and government treasury officials met in Tel-Aviv this morning and were unable to hammer out a deal. The treasury officials are refusing to give in to workers’ demands for a cost-of-living increase. Finance Minister Silvan Shalom explained today that the government cannot afford such increases while it is cutting defense and welfare-budgets. Last night Shalom rebuked the labor unions for striking during these trying economic times.