Israel Plagued by Strikes, Slowdowns

Strikes, slowdowns and protest meetings continued to plague the country today as government workers pressed for higher pay. The Cabinet is scheduled to convene a special session at the end of the week to discuss the growing economic crisis and to consider Finance Minister Yigal Cohen-Orgad’s economic plans and the proposed trimmed budget for the new fiscal year.

Today, all postal services were paralyzed as 3,500 post office employees, including workers at the post office banks, stayed at home. Mail was not collected from post office boxes and delivery of mail was halted. The postal workers have not indicated how long they intend to continue their stoppage.

Labor and Welfare Ministry employes also continued their partial work stoppage which involves not dealing with the public or marking payments. Income tax and property tax workers also continued their strike. Administrative employes in government hospitals have threatened to stop work if they are not granted a 5,000 Shekel ($50) allowance. They have also threatened to halt work on the 24th of each month in the future if cuts in overtime allowances are not restored.

MUST REDUCE BALANCE OF PAYMENTS DEFICIT

Orgad, addressing the Knesset Economic Committee today, warned that unless Israel reduces the deficit in its balance of payments by $1 billion it will not be able to find additional sources of financing to repay loans. On the other hand, he said, if the gap in the balance of payments is narrowed by $1 billion, the economy will be able to grow at an annual rate of 1.5 percent beginning in 1985.

Gad Yaacobi, chairman of the Economic Committee, said at the same session that the present economic hardships were a direct outcome of the “stupid economic policy of the government in the past few years.” He predicted that in 1984 inflation will soar to 300 percent. Under such circumstances, he warned, the economy will become paralyzed.

Economic experts expressed doubts today that Cohen-Orgad will be able to achieve his economic objectives because of the growing unrest and turmoil in the economic sector of the country and because of internal difficulties in the Likud coalition.

Deputy Premier David Levy has already announced his opposition to a policy of “controlled unemployment,” a predictable consequence of the government’s economic policy, and a tough attitude toward the demands of the workers. The Tami Party, which represents the low income segment of Israel’s population, primarily the Sephardim, is also opposed to further economic hardships which would intensify the poverty and misery of low income families.

In addition to the narrow majority of the coalition — 64 members in the 120-member Knesset, including former Premier Menachem Begin who has not been a functioning Knesset member in the last few months–the coalition is also beset by other difficulties. Foremost among them is the pressing demand of the Aguda Party to pass legislation on the issue of “Who is a Jew” and legislation banning all public transportation on Saturdays.