Friday, July 19, 1985 7

THE DETROIT JEWISH NEWS

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NEWS

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Economy Debate
Is Continuing

Jerusalem (JTA) — While some
agreement was reported at the
economic summit meeting Sun-
day which lasted well into the
night, Histadrut went ahead this
week with plans for a nationwide
general strike, an indication it is
far from satisfied with the results
so far of negotiations over the
government's emergency eco-
nomic program.
Sunday's meeting was attended
by Premier Shimon Peres and Fi-
nance Minister Yitzhak Modai;
Eli Hurwitz, president of the
Manufacturers Association; Yis-
rael Kessar, Secretary General of
Histadrut and Haim Haberfeld,
chairman of its trade unions di-
vision; Moshe Mandelbaum, Gov-
ernor of the Bank of Israel; and
Attorney General Yitzhak Zamir.
That assemblage of the coun-
try's top political, economic, busi-
ness, labor and legal leadership
indicated the urgency of the situa-
tion and the desire of all parties to
avoid either crippling strikes or
the postponement of measures the
government says are the only way
to avert economic collapse.
An understanding was said to
have been reached that wage-
earners will receive a 14 percent
cost-of-living increment at the
beginning of next month. But
there was no agreement on
whether workers in the public
sector will be compensated at that
rate.
An agreement seemed to be in
the making on the scheduled mass
dismissals of civil service work-
ers. It is said to provide for a
60-day negotiating period be-
tween the government and His-
tadrut to work out terms and
timetables. The government had
originally intended to dismiss
10,000 civil service employees by
decree.
The Cabinet meanwhile, re-
versed itself Sunday and agreed to
increase the allowances granted
families of four or more children,
including Arab families. Premier
Shimon Peres promised moreover
that the poorest 20 percent of the
population will receive full com-
pensation for cost-of-living in-
creases.
The Cabinet had originally de-
cided to raise childgillowances by
11 percent, but only for families
with a member who served in the
armed forces. This excluded the
vast majority of Arab families in-
asmuch as Arabs are barred from
serving in the Israel Defense
Force (IDF).
The cost-of-living index rose by
14.9 percent in June, according to
figures released by the Central
Bureau of Statistics this week. It
is the highest rise ever for the
month of June but about five per-
cent lower than the Finance
Ministry, the Bank of Israel and
most economists had predicted.
In Haifa, the bankrupt Ata tex-
tile mill's nearly 2,000 employes
have been informed that their jobs
were officially terminated as of
June 28.
The giant industrial complex on
Haifa Bay, once the largest em-
ployer in the Haifa area, was offi-
cially closed by court order. A last
minute effort to sell it to a foreign
syndicate was rejected by the

Ministerial Economic Committee.

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