The treasury and Interior Ministry alleged before President of the Labor Court Steve Adler that funds had been transferred to 23 municipalities and local councils to enable them to pay withheld wages to their employees.

They also rejected the Histadrut's demands to instigate legal proceedings against local authority heads personally. Histadrut representatives said that the fund transfers were insufficient, since the problem of withheld wages and benefits remained unsolved.

The ministry and treasury also rejected the Histadrut's offer to donate the equivalent of one vacation day to 700,000 public sector employees whose salaries have been withheld, citing the cost of redeeming a vacation day, which would fall on the state.

"If the problem of wage debts in dozens of local authorities is not solved by the end of the week, the Histadrut Labor Union would hold another strike," said Histadrut Chairman, Ofer Eini.