Finance Minister Bezalel Smotrich and Histadrut (General Labor Federation of Israel) Chairman Arnon Bar-David met today to discuss the Finance Ministry’s plans for the 2025 budget, some of which are against the interests of the labor organization and will be demanded of him. consent. The main issue is the intention of the Ministry of Finance to save 8 billion manats by freezing the salary increase of employees working in the public sector in the coming months. In addition, the Ministry of Finance is trying to freeze the minimum wage component of public sector workers’ salaries and stop the revision of tax items that will affect all employees.
Trying to calm the opposition, Smotrich came to today’s meeting with a confidence-building measure. At the meeting, Bar-David was told that the official budget proposal submitted by the Ministry of Finance to the government will include a plan to close unnecessary government ministries. Such a move would not prevent workers’ wages from eroding, but it echoes statements by the Histadrut chairman.
In the early months of the war, the Histadrut agreed to adopt a program in which each worker would “contribute” a vacation day’s salary, worth hundreds of shekels, to fund the budget for reservist training. The organization later announced that it would not accept such measures until the government drastically cuts spending on coalition party programs and closes non-vital ministries. Smotrich’s idea is to close five ministries, one for each coalition party.
Extinguish the flames
Smotrich’s determination and his ability to get his coalition partners to agree on the closure of ministries await proof. However, this is a clear policy change by the finance minister, who has so far refused to accept the recommendations of professionals in his ministry to close down ministries. Abolishing the offices of ministers and deputy ministers will not save significant amounts in the context of the state budget, but it will at least spread a sense of responsibility in the leadership at a time when Smotrich is urging employees to lend. participating in the heavy costs of the war through tax measures and cuts.
At the meeting with the Histadrut, Smotrich and his aides presented the plans, but the discussions did not go into details. It was agreed to continue the dialogue between the parties and examine all aspects of the budget.
Tensions arose between Smotrich and Bar-David due to a general strike announced by the Histadrut chairman two weeks ago in support of demands for an agreement to release Israeli hostages held by Hamas in the Gaza Strip. Smotrich obtained a court order to stop the strike and accused Bar-David of “doing Sinvar’s wish”.
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Now Smotrich is trying to put out the fire and use Bar-David to save billions of shekels in public spending. “The meeting took place in a good atmosphere and the two agreed that they will work together in a spirit of responsibility for the well-being of the Israeli economy and workers, recognizing the challenges facing the State of Israel, and for the sake of all Israeli citizens. was part of the discussions with all players of the economy, said the statement made on behalf of Smotrich.
Globes, Israel business news – en.globes.co.il – published on September 12, 2024.
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