An inter-coalition committee, which was named last night to seek a solution to a Government dispute over cost-of-living payments, began sessions today amid indications that a threatened Cabinet crisis had been averted.
The core of the dispute is a compromise proposal by the Alignment of Premier Levi Eshkol’s Mapai party and Achdut Avodah to pay in 1967 half of the scheduled cost-of-living allowances given workers on the basis of changes in Israel’s cost-of-living index. The leftist Mapam, a coalition member, had demanded full payment but was understood to have agreed to the compromise as did the Histadrut, Israel’s labor federation. But the religious bloc and the Independent Liberals served a virtual ultimatum yesterday on Premier Eshkol that if increases in either the allowances or wages were approved, they would quit the Government, precipitating its collapse.
The 14-member inter-coalition committee represents coalition parties and the Histadrut. Its members include Finance Minister Pinhas Sapir, Labor Minister Yigal Allon and Histadrut secretary-general Aharon Becker.
Details of the discussions were kept secret but sources close to the Alignment said that it appeared likely a solution to the impasse would be based on payment of four percent of the allowance–about half of the actual cost–to workers earning less than 600 pounds ($200) a month. The session began today in a spirit of guarded optimism with participants quoted as believing a Cabinet crisis would be avoided.
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