BICOM

Negotiations between the Finance Ministry and officials from the Histradrut central workers union over the minimum wage broke down yesterday. The Histadrut has threatened a national strike unless an increase is agreed.

Histadrut chairman Avi Nissankoren told the Knesset Labour, Welfare and Health Committee on Monday that there should be a £165 increase to the monthly minimum wage in Israel on top of the current monthly minimum of £709. Nissankoren commented, “I will fight as hard as I know how so that there will be a real change here.” He said that if “the disgrace of the minimum wage in Israel” and “the worrying spread of the phenomenon of contracted workers” was not resolved, then he would call for a national strike next week. Such a measure would likely paralyze significant portions of Israel’s economy, although there would be a two-week period between declaring industrial action and strike action commencing.

Talks were held yesterday between Histadrut and Finance Ministry officials over the minimum wage, but the negotiations broke down. It is thought that the Finance Ministry isn’t opposed to raising the minimum wage in principle, but that there is disagreement over the extent of such an increase. Bank of Israel Governor Karnit Flug also said recently that there is scope to raise the minimum wage. Finance Ministry and Histadrut representatives are reportedly set to meet today on the issue of contract workers.

However, sharp disagreement over the minimum wage remains. Nissankoren said that regular working Israelis had not benefitted from Israel’s economic growth, commenting, “The ministers have to decide what we want there to be here. A nation of poor people? A nation of contract workers? A nation that degrades the weak?” Finance Ministry official Tzvika Oren said he “agreed that action must be taken on behalf of the weak in society and closing social gaps, through orderly negotiations, with a clear and full schedule and without the threat of a strike overhead.”