Israel Post workers plan to shut down post offices early on Thursday in protest of the Joint Finance and Communication Ministry Tariff Committee's recommendation not to allow the Israel Post to lower prices.

The workers' protest will include the discontinuation of some postal services such as rural deliveries, handling of payments to government offices and delivery of diplomatic mail.

The chairman of the national postal workers' union, Reuven Karazi, said on Wednesday that the company is interested in lowering its prices in order to compete with rival private companies that provide similar services. "Due to the fact that we can't compete in the market, the company stands to lose some NIS 400 million and will be forced to fire some 1,000 employees out of 4,500 permanent staffers and an additional 2,000 temporary employees," Karazi said.

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The Tariff Committee was established six months ago in order to determine the tariffs that would be charged by the Israel Post company. However, the committee has no influence on the prices charged by private postal companies. The Knesset Finance Committee is scheduled to approve the Tariff Committees recommendations in two weeks. The recommendations will not take into account the workers' request to lower prices.

In July, postal services for private companies will be opened to full market competition.

Two months ago the Postal Company lost a tender to deliver and distribute all the mail for Bezeq, Israel's leading communication company. Karazi said that this loss will cost Israel Post NIS 25 million a year in lost revenues.

Histadrut Chairman Ofer Eini said that the Tariff Committee's recommendation was illogical and would hurt the postal workers.

"Dan" bus drivers want raise, decide to disrupt routes

"Dan" bus drivers, demanding wage increases, began disrupting bus routes on Thursday in Jaffa, Tel Aviv and Ariel.

The bus drivers say that in light of the company's financial difficulties, they have been donating NIS 700 a month from their salaries to a fund intended to aide the company.

However, since the drivers have not received a pay raise in the last 14 years they are demanding that this money be returned to them. The drivers say that the company's executives have refused to do this.

"Senior bus drivers, who have been working for the company for over 30 years are being paid only NIS 25 an hour. Due to management's lack of receptiveness, following five months of negotiations, we have decided to suspend some of the company's main routes", said Drivers' Committee Chairman David Yunger.