A strike by Israel's Postal Authority inched closer Saturday, following the suspension of crucial Saturday evening talks between the Histadrut labor federation and government officials, Army Radio reported.

According to the report, the talks between Histadrut chief Ofer Eini and Communications Minister Ariel Attias were put on hold after the director-general of the Finance Ministry said that he would not attend the meeting.

Failing a last minute development, workers at 700 postal branches across the country will Sunday morning launch an open-ended strike, following protests over the government's refusal to reduce postal service tariffs.

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The strike could mean a delay in the transfer of payments to government bodies, including the Tax Authority and the National Insurance Institute.

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