A meeting between Finance Minister Benjamin Netanyahu and Histadrut Chairman Amir Peretz aimed at averting a general strike ended late Thursday night ended with a decision for treasury and Histadrut negotiating teams to resume talks Friday morning, Israel Radio reported.
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The all-out strike is slated to begin Monday, and follows four other unsucessful attempts by the two sides in one week to reach an agreement on the treasury's proposed structural changes to government offices, which the labor federation claims will result in job losses for hundreds of state employees.
The Histadrut wants the government to freeze three major components of its economic program: plans to reorganize and merge several government agencies, plans to dismiss several hundred public-sector workers, and the pension reform law enacted by the Knesset in May.
Meanwhile, the Manufacturers Association of Israel said Thursday that it will join the Histadrut in its struggle with the Finance Ministry. The association has objected to holding a general strike until now.
The organization's chairman Yosef Rozen said Thursday that the treasury was trying to unilaterally harm pension plans and work relations.
Director General of Wages and Labor Agreements at the Ministry of Finance, Yuval Rachlevsky, told Army Radio earlier Thursday that the treasury was making every effort to reach a deal with the labor federation and that "the ball is now in the Histadrut's court."
In a letter to Peretz, the finance minister wrote Wednesday that he was willing to declare a two-month freeze on the implementation of the measures that sparked the strike, but conditioned the move on an end to the current labor sanctions as well as to the threat of an all-out strike.
Netanyahu stressed that the treasury would not back down, and does not plan to change existing legislation regarding pensions, but said that certain measures can be discussed.
Netanyahu suggested that the intervening time - until December 31 - be used to work toward forging an end to the dispute.
Treasury Director-General Ohad Marani said Wednesday that the Treasury is interested in continuous dialogue with the Histadrut, so as to avert the general strike. According to Marani, if the Histadrut decides to launch a strike, the government will be prepared, and will ensure that public services will be provided from other sources.
Marani said that the treasury is preparing alternative services, and stressed that all those who participate in the strike will not receive wages.
"The wilder and less reasonable the measures taken by the Histadrut, the more aggressive the treasury's response will be," Marani said.
The Histadrut and workers at the government complex in Jerusalem were to hold a large demonstration opposite the Foreign Ministry on Wednesday afternoon. Workers dealing with imports and exports stepped up their labor sanctions and will only deal with perishable goods.
Sanctions by public sector workers are now in their second week and have closed government ministries to the public, as well as the National Insurance Institute and the Employment Services.
The Head of the Teachers' Union, Yossi Wasserman, said Wednesday evening that teachers could join the strike, if one was launched, because the new budget adversely affects educators. According to the Education Ministry, teachers will not receive wages for the days they strike.
Director of the Government Companies Authority, Eyal Gabbai, has already begun preparing for a general strike and Tuesday ordered the head of all the large government agencies to present him, within two days, with their plans to deal with the strike. National airline El Al, the Israel Electric Corporation, water utility Mekorot, phone company Bezeq, Israel Aircraft Industries and Israel Railways are some of the state-run companies expected to join the strike.
A general strike could cost the state NIS 1.8 million a day in losses, the head of the Manufacturers Association, Oded Tyrah, warned Tuesday. Tyrah will hold an emergency meeting of business leaders to discuss ways to deal with the strike
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