The executive committee of Histadrut, Israel’s federation of labor, voted unanimously here today to call upon the Government to stop the wage spiral and to take “urgent steps” to halt inflation. The unanimity, however, broke down along party lines when the committee considered the causes of the current inflationary trend and the steps to be taken to stem the trend toward inflation.
A majority of the executive adopted the wage proposals made by the members representing the Mapai Party-Achdut Avoda alignment. These proposals call for wage increases ranging from 5 percent to 10 percent in 1966, and additional 5 percent hikes next year for workers in industrial production and for service workers. But the alignment proposed a “wage pause” for white collar workers, technicians and teachers, suggesting that these salaries remain unchanged when new contracts are negotiated. The proposals also call for the preservation of the automatic cost-of-living allowances, formation of a Government Labor Court to handle labor disputes, and the establishment of a Supreme Economic Council to formulate national economic policy.
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