Minister of Finance Yair Lapid and Histadrut chairman Ofer Eini held a long meeting last night ahead of the budget discussions. Afterwards, they issued a joint press release, which stated that the "atmosphere was good" and that progress was achieved in the talks. The Histadrut added that its leadership would not discuss declaring a labor dispute at this time at today's meeting, as "Globes" reported yesterday.
It appears that, for now, advanced training funds will not be taxed, at least not as part of the Economic Arrangements bill, which will be submitted together with the budget. Eini had called this measure a "Bordeaux line". Plans to restrict the right to strike have also been taken off the agenda.
The Histadrut has two main disputes with the Ministry of Finance: taxing employees' advanced training funds, which the ministry estimates will generate NIS 2.5 billion in revenues; and the planned NIS 2 billion cut in public sector salaries. It seems that Eini may accept a mechanism whereby the final public sector pay hike of 1%, which is worth NIS 1 billion, will be postponed to 2015, provided that employees will be indemnified for the two years in which their salaries were frozen.
Until now, Lapid has not commented on the intention of banning strikes at the seaports, airports, and Israel Electric Corporation (IEC) (TASE: ELEC.B22), strengthening the impression that this is a serious proposal, and not just a trial balloon.
Published by Globes [online], Israel business news - www.globes-online.com - on April 30, 2013
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