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The labor dispute that the Histadrut labor federation declared Thursday remains in place, but it is increasingly unlikely that it will lead to a general strike in two weeks.

Union leader Ofer Eini met last night with Manufacturers Association head Shraga Brosh and Union of Local Authorities chief Shlomo Buhbut to discuss their positions on the prime minister's announcement that the minimum wage would be increased.

The Histadrut has taken issue with the government's intent to increase the minimum wage only for workers who earn the "real" minimum wage. This means that government workers who earn the minimum wage on paper but earn more in practice would not benefit.

Meanwhile, the Prime Minister's Bureau and the Finance Ministry have reportedly changed their negotiating strategy. Instead of responding to the Histadrut's demands in order to prevent strikes, they plan to let the union follow through with its threat.

The compromises the government made to prevent strikes proved too expensive and damaged its reputation, sources say.

After the announcement Thursday that the government would reduce tax on water and gasoline, among other measures designed to improve citizens' finances, the government is not willing to make more compromises, the sources say.

The Histadrut declared its labor dispute partially due to increased prices, namely on bread, gasoline and water.