Increases of five percent in basic wages should be granted to Israeli workers, it was decided here this week-end by the executive of Histadrut, the Israel labor federation. The decision followed prolonged discussion and negotiation which necessitated the participation, at one time, of Prime Minister David Ben Gurion, and Minister of Finance Levi Eshkol.
The exact increases for each of the trades will be determined by the federation’s Trade Union Department. On the other hand, earlier promises to professionals and certain of the trade unions would now be shelved, and wages in these categories are to be frozen, because of the present emergency. The decision as to whether the new increase should be tied to the cost-of-living index will also be made by the Trade Union. Department.
The decision to ask this wage increase pattern was taken by a majority vote in the executive in which the Mapai Party carried over the opposition of all the minority parties which wanted larger increases.
Prior to the adoption of the resolution, Mr. Eshkol warned the Histadrut leaders that “a raise in pay and more bank notes will not raise the standard of living, but will bring inflation.” This, he added, might not be felt immediately, but it would be felt in a few months’ time. The only way to combat inflation, he asserted, was to increase production and exports.
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