The Cabinet decided yesterday to grant the wage demands of striking teachers in compliance with the order of a district labor court. But it avoided the problem of where the extra money — estimated at IL 3-5 billion — would come from. That matter was referred to the Economic Committee, headed by Finance Minister Yigal Hurwitz who objected strenuously to wage hikes for the teachers.
This morning, however, the committee agreed unanimously to iturwitz’s proposal to pare the budget of each government ministry by 1.5 percent in the coming fiscal year. This is expected to provide the cash to pay the teachers without printing more money to fuel inflation.
The Cabinet’s decision means that the government has abandoned its plans to appeal to the national labor court against the district court’s order. Hurwitz had objected but was overwhelmed by the majority sentiment of his colleagues. The latter were apparently influenced by Education Minister Zevulun. Hammer of the National Religious Party who hinted that he might quit unless the teachers got their raises. Such a move could have precipitated a Cabinet crisis and possibly toppled the government.
MINISTERS FALL INTO LINE
Hurwitz, nevertheless, demanded that the Cabinet show him where the extra money was to be found. His IL 405 billion national budget recently adopted for the next fiscal year made no provisions for higher teachers’ salaries. Suggestions that “other budget items” be cut were not popular. Deputy Premier Yigael Yadin declared that he would oppose any reductions in welfare and social betterment.
The decision by the Economic Committee was facilitated by Defense Minister Ezer Weizman who assented by telephone to prune the defense budget by 1.5 percent. The other ministers then fell in line.
Hurwitz, Hammer and other members of the economic team insisted that the concession to the teachers would not touch off a new round of wage demands from other employee groups. They were swiftly proven wrong when the Engineers Association announced last night that it wants the same raises the teachers have been given.
Ironically, it was the wage increase won by the strong engineers’ union more than two years ago that led to the teacher demands for higher pay. A clause in the teachers contract links their salaries to those of government-employed engineers. The teachers finally won their victory and in fact, received slightly more than the engineers. The latter now insist on equal treatment and are demanding the same increment.
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