BICOM

An agreement was reached yesterday between the Histadrut central workers union and the Manufacturers Association to increase the minimum wage in the private sector, preventing the threat of a national strike starting Sunday.

Histadrut chairman Avi Nissankoren had declared a labour dispute last month over a number of issues, the most prominent being the minimum wage. The Histadrut has insisted on a £165 increase to the minimum wage in Israel on top of the current monthly minimum of £709. It had said that should the issue remain unresolved, it would call a national strike to begin on Sunday, a measure likely paralyze significant portions of Israel’s economy.

Talks between the Histadrut and Finance Ministry officials broke down last week. It is thought that disagreement remained over the extent of an increase. However, it was announced yesterday that the Manufacturers Association had agreed to the Histadrut’s demands and that private sector workers would see the £165 increase implemented in three stages between January 2015 and January 2017.

The increase though will not yet be applied to public sector workers. The Finance Ministry had been negotiating on their behalf, but talks have been suspended until further notice as any agreement would need the signature of the Finance Minister. The portfolio is currently vacant following the sacking this week of Yair Lapid. It is possible that the issue will remain unresolved for public sector workers until after March’s general election and the installation of a new government.

Nonetheless, Economy Minister Naftali Bennett hailed yesterday’s agreement, calling it “important news for all of Israel.” He said, “This was done in the proper way — through dialogue rather than force.” However, Labour MK Merav Michaeli contended that the raise in the minimum wage is “not an achievement for this incompetent government, it is an achievement for the Histadrut.”