Finance minister prepares for cabinet's emergency economic plan debate
Silvan Shalom backs down from plans to freeze wages in public sector through legislation
Finance Minister Silvan Shalom has backed down from his decision to ask the government to approve freezing wages in the public sector through legislation. Instead, Shalom is to continue negotiations with the Histadrut labor federation in order to freeze wages through an agreement.
This should help Shalom to attain the cabinet majority required to pass the NIS 13 billion emergency economic plan.
Histadrut Chairman Amir Peretz agreed over the weekend to continue the talks, but hasn't withdrawn the threat to call a general strike in two weeks.
Shalom is to continue talks with the Labor party, a member of the national unity government, in order to win its support for the plan.
