Tension mounted here today over the Government’s apparent intention to avoid payment of the cost-of-living allowance, for the first six months of the year, in line with efforts to reduce inflationary pressures and to bring Israel’s economy back to a more even keel.
Against opposition of Mapam, left-wing labor party, the Government is urging the Histadrut, Israel’s labor federation, not to press for the entire increase now.
Government economic ministers maintain that labor’s acceptance of a token payment now, with the balance to be paid in six months, will encourage industrial activity and stimulate employment. Mapam leaders, however, have reiterated demands that the Government implement last year’s promise to provide the payments in full as scheduled.
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