Finance Minister Roni Bar-On and Histadrut labor federation Chairman Ofer Eini agreed Tuesday to hold intensive talks over raising the salaries of public sector workers in order to avert a major strike.

The labor federation had planned a strike involving government mininstries, local authorities, Ben Gurion International Airport, Israel Railways, the Government Employment Service, and other state-run agencies.

The threat of such action has now been lifted for at least 10 days.

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Trade union chiefs, who also participated in the meeting with Bar-On, and the Histadrut together represents some 700,000 workers in the public sector.

Bar-On's position goes against that of Eli Cohen, the Finance Ministry wages director, who up to now has rejected any increase to workers' salaries. The Histadrut is demanding a raise of more than 10 percent, a raise Finance Ministry officials say will cost over NIS 10 billion a year.

Eini and Bar-On concluded that Eini will hold with Cohen intensive negotiations Sunday over a uniform salary rise for the whole public sector. If after a week the talks have still yielded nothing, Bar-On and Eini will meet again.

As such, the Histadrut's threatened public sector strike has been postponned for at least 10 days. The Histadrut had been planning a strike in the face of Cohen's opposition.

The Histadrut is also in contact with the heads of 10 major trade unions on issues other than wages on which they are set to sign detailed agreements.