Sources close to the committee charged with higher education reform say that if Prime Minister Ehud Olmert negotiates directly with the striking university students, there is no point for the committee to continue its activity. The students have demanded to meet with Olmert and discuss the end of their strike, now entering its ninth day.

Wednesday, students claimed the Prime Minister's Office had agreed to hold direct talks on tuition, but canceled the meeting later in the day. Sources close to the Shochat Committee say an agreement with the students would constitute a line in the sand. Former finance minister Avraham Shochat told Haaretz Wednesday "the committee will continue to follow developments regarding the students and consider its steps accordingly."

Wednesday morning, university professors ended their strike after reaching an agreement with state representatives that no Shochat Committee recommendations for changes in their wage structure will be implemented unilaterally and the sides will enter negotiations.

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Shochat himself sharply criticized the "terrible" agreement, saying it would "make implementing committee recommendations difficult." He argued that the government "folded" before the senior academics and "signed a document that gives the professors veto power over anything."

The head of Tel Aviv University's student union, Boaz Toporovsky, said the agreement with the professors weakens the committee and "renders it irrelevant. It will not decide on professors' salaries, and with our struggle, it will not decide on tuition either, so what is left?"

Teachers unions announced Wednesday that the strike at junior high and high schools will resume Thursday and that exams scheduled for Thursday will be rescheduled. The Education Ministry claims this violates a Monday injunction ordering the teachers to hold all activities related to matriculation exams including practice tests. The teachers unions argues that postponing the practice tests does not violate the injunction.

The Shochat Committee's status was already weakened on Sunday when the Knesset created a committee to examine the crisis in higher education. Education committee chair Michael Melchior said the committee would submit recommendations to the cabinet, but if they are not implemented, the committee would try to do so through legislation.

The Shochat Committee is expected to recommend raising tuition and creating differential fees.

The agreement between the state and the professors was reached in late-night negotiations brokered by Education Minister Yuli Tamir. It was signed by Olmert, Tamir, Finance Minister Abraham Hirchson and university leaders. The professors managed to prevent mandatory changes in the employment structure for senior academics.

Shochat said Wednesday that the central issues that worried professors are not even included in the committee's interim recommendations. The professors, however, were very worried by one of the clauses in the interim report published by Haaretz, which called for a small number of "elite scientists" to be employed on "personal grants."

Junior academics were bitter about the professors' agreement, which they said undermines their struggle and may force them to call off their strike, although their employment conditions are far worse than those of the senior staff.

Senior academics have tenure, as well as funding and time to invest in research and travel abroad for conferences and study. The Shochat recommendations include suggestions to increase their financial remuneration for engaging in research. In contrast, the recommendations do not cover improvements in the status of assistant professors, who are poorly paid, do not have tenure and are fired and rehired on an annual basis.