Two teachers' associations on Tuesday declared a labor dispute at all levels of the country's system of education, over the Finance Ministry's refusal to hold negotiations to finalize a collective settlement on wages.

There has been no such collective settlement between the teachers' associations and the Finance Ministry since 2001.

Representatives of the teachers' associations are expected to meet with members of the Finance Ministry on Sunday, but director general of the Teachers' Union, Yossi Vasserman, says the chances of making headway are slim.

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"So far, the finance ministry hasn't made any offers, so we've decided that we won't allow them to continue playing games with us. We demand, among other things, a substantial increase of the education budget, an improvement of the schools' infrastructures, and a considerable salary raise, so that we will not be at the very bottom rung of public sector salary recipients," he said. "We are tired of the finance ministry's way of constantly brushing us off."

On January 4 the two teachers' organizations will be able to go on strike, but Vasserman says no decision has been reached over what course of action they will take. "We don't want to hold a strike, but the Finance Ministry leaves us little choice," he said.

"Since August 2005, when the law prohibiting negotiations between trade unions and and employers went out of effect, the finance ministry, using various excuses, has been foot-dragging in an attempt to buy time," said Ran Erez, the chairman of the Secondary School Teachers Association. "The abysmal working conditions and pathetic salaries of teachers are a direct result of the government's attitude towards the education system."

In reaction to the labor dispute announcement, Education Minister Yuli Tamir called for immediate negotiations between the Finance Ministry and the teachers' unions.

In the mean time, hundreds of teachers in training demonstrated outside the Knesset to protest the planned cut - NIS 22 million - to the budget of teachers' training colleges.

Two weeks ago the ministry reduced the planned cut by NIS 16 million.

National Students' Organization Vice President Tomer Ovad said that he hopes Tamir will cancel the budget cut.