Bus service, the chief means of public transportation in Israel, was halted for three hours today as the two bus cooperatives staged a work stoppage in an attempt to force the government to approve higher fares. The cooperatives, Dan in the Tel Aviv region and Egged countrywide, said the action was the first of a series of stoppages planned in the next three days as a “warning.” Tourist sightseeing buses and military buses were not affected. There were threats of a general transportation strike by the end of the week unless the government changes its policy on bus fares. The Transport Ministry has reportedly made plans for such a contingency. The cooperatives argue that Israel enjoys one of the lowest bus fares in the world, made possible by government subsidy. But the two bus lines have accumulated a combined deficit of nearly $70 million which the government attributes to poor management. The government is reluctant to raise the fares because it would effect the cost-of-living which is tied in to most wage contracts in Israel.
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