Wage-earners received a 17.9 percent interim cost-of-living allowance on their monthly salaries yesterday. But the advance payment failed to halt a rash of protest rallies and work stoppages by government employes and others alarmed over galloping inflation and a rapidly worsening economic outlook. Violence erupted near Eilat over the impending shutdown of the Timna copper mines because of the slump in world copper prices.
The c.o.l. advance was not sufficient to compensate workers for the erosion of salaries by inflation during the last three months, estimated at about 40 percent.
Histadrut Secretary General Yeruham Meshel warned several days ago that if inflation continues at its present annual rate of nearly 200 percent, the trade union federation will demand that salaries be paid every two weeks instead of monthly and the c.o.l. increment be updated each month instead of each quarter. The next c.o.l. allowance, nearly 50 percent, is due in mid-January.
Histadrut held a rally in Jerusalem today protesting the government’s economic policies. About 1,000 workers in the Jerusalem area lost their jobs in the past two months, though most have found new jobs.
PLIGHT OF LOW INCOME FAMILIES
The Zehavi movement, which represents large families with low incomes called a press conference here today to demand an increase in allowances for child care. There are some 250,000 families with four or more children in Israel, and many of them are impoverished, according to spokesmen for the movement.
Avraham Danino, one of the Zehavi leaders, blamed the government and was especially critical of Tami, the coalition partner which represents a low income, largely Sephardic constituency. “Tami has fallen silent,” he said. “Deputy Premier David Levy (who is also Minister of Housing) talks only after the hardship befalls us. The delicate, sensitive social tissue which was built with such hard work is gradually falling apart,” he warned.
The Zehavi movement urged the government to link child care allowances to five percent of average salaries. They are presently paid at a rate of 2.5 percent.
WORRIED ABOUT DISMISSALS AND INFLATION
Workers in general are worried about dismissals and the heavy toll of inflation which, according to Labor MK Gad Yaacobi, will reach a rate of 300 percent next year. The Timna mine workers blocked the main highway north of Eilat for two hours today. Two workers and two policemen were injured in a clash brought about by police attempts to remove a vehicle blocking the road.
The mines employ several hundred workers which is a considerable part of the Eilat labor force. They have been on strike for more than a week, hoping their action would avert a shutdown next month. The town’s other principal sources of employment are also suffering. Tourism is down and much of the port is idle because of the drop in Israel’s import-export trade.
Elsewhere in the country labor unrest continued. Employes at the income tax offices stopped work for three hours yesterday to protest the erosion of their wages. Work slowdowns are underway at the offices of the Labor and Welfare ministries. Postal workers are threatening to strike tomorrow. But striking railroad workers and employes of the Defense Ministry returned to their jobs today on the promise that their wage demands would be given immediate consideration.
The economic slowdown was felt on the Tel Aviv stock exchange yesterday. Last week, the Bank of Israel spent the equivalent of $40 million to shore up sagging bank stock and index-linked bonds.
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