Histadrut Approves New Wage Package; Part of Increase to Be in Government Bonds

The Histadrut central committee agreed last night to a proposed wage package deal that will pay part of the annual across-the-board wage increase in Government bonds. The trade union’s executive committee will meet Sunday to act on the central committee’s recommendation. The proposal originated with Israeli industrialists and was strongly endorsed by Finance Minister Pinhas Sapir. The measure is expected to have a restraining effect on price increases and, it is hoped, will help hold down inflation. Histadrut agreed, albeit reluctantly, to a seven percent wage increase for the current year, four percent of which will be paid in Government bonds and the balance in cash. Employers, on their part, will purchase a like amount of bonds. The Government in turn will not raise sales taxes and tariff levies except on certain luxury items such as automobiles and electrical appliances.

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