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Israel Trade Minister Calls for Wage Freeze; Histadrut to Examine Its Wage Policy

January 3, 1951
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A call for a national wage freeze to “halt the spiral of inflation” was voiced here today during a Knesset debate by Yaacov Geri, non-party Minister for Trade and Industry. Mr. Geri immediately made it clear that he was speaking for himself alone, not for the Cabinet.

The statement is viewed here as especially significant because the Histadrut will begin within a few days an internal discussion of its future wage policy and its general demands in new contracts. The discussion has been forced by the fact that union after union has demanded substantial wage increases in the face of the labor federation’s announced policy of “holding the line.”

It is reported that Golda Myerson, Labor Minister, and Pinhas Lubianiker, Agriculture Minister, both of whom are top leaders of the Histadrut, are seeking a formula which would preserve the present wage scale but would offer bonus payments for increased production. The formula is not expected to be acceptable, particularly not to the metal trades unions which is led by the left-wing Socialist Mapam.

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