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The postal agents' strike is preventing the transfer of income tax, VAT and national insurance payments, according to Benny Cohen, head of the postal agents' union.

Cohen said the strike encompassed 178 agencies. Negotiations between him and Israel Post CEO Avi Hochman have broken up without success.

Cohen said that over and above the payment transfers, postal deliveries had also been disrupted. He said that letters and parcels that had been confiscated from the agencies had been taken to sorting offices in Petah Tikva and Bnei Brak, and that they were still there.

An Israel Post spokeswoman said in response that the postal agencies' strike was falling apart.

At present, she said, 98 agencies were striking, and not 178 as Cohen claimed, and therefore it was not affecting payment transfers. Apart from the postal agencies, which are run by private subcontractors, post offices all over the country are open as usual, and all postal services are available from there.

Israel Post representatives recently raided postal agencies and confiscated all their equipment and all postal items included in the agency sites .

However, the union petitioned the district court, which ordered the company to stop this practice.