Partial Cost of Living Dealin Sight

Histadrut and the Manufacturers Association have reached agreement on the payment of up to IL 600 in January salaries as partial compensation to wage-earner for the recent sharp rise in the cost of living index.

Senior Histadrut official Rehaviah Ofek who negotiated with the Manufacturers Association, announced the deal on the Army Radio tonight He made it clear that he and the Manufacturers Association which represents all employers in the private sector, expect the government to endorse the agreement and apply it to the civil service and government-owned industry too.

The IL 600 payment will comprise 10 percent of salary up to a ceiling of IL 6000. Ofek explained that this was a partial, temporary measure to ease the effects of the galloping inflation until the full cost of living increment becomes due for payment in April. Histadrut had demanded that the payment be advanced to January following November price increase statistics and December projections which put inflation for the calendar year 1978 at over 51 percent.

The Initial reaction from the government and the employers was negative, But in the course of negotiations, said Ofek, a general consensus emerged that low wage earners ought to be compensated and a low ceiling (IL 6000) was arrived at.

Meanwhile, the Merchants Association announced today that it would advance the annual winter sales in the in the shops by one month, beginning them Sunday instead of Feb. 5 as originally scheduled An Association spokesman referred to a slow turnover in recent weeks. But observers noted that move followed the Histadrut Consumer Association’s threat to declare a “buyers boycott” of clothing and shoe stores because of high prices. The annual soles usually mean reductions of 20 percent or more.