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Sapir Seeks to End Retroactive Payment of Wage Increases in Israel

The Cabinet has asked its committee on wages to negotiate with the Histadrut on a law proposed by Finance Minister Pinhas Sapir which would abolish the practice of retroactive salary payments.

Sapir told the Cabinet Sunday that all future wage contracts should be ended before the existing contracts expire and salary contracts in all the various sectors of the economy should be for the same time period.

The Finance Minister said the economy was harmed by the existing practice of signing wage contracts late and then giving employes large sums in back pay. Labor relations also suffer because of the delayed contracts, Sapir added.