Israel unions call off general strike

Israeli Prime Minister Benjamin Netanyahu (R) and Israeli Finance Minister Yuval Steinitz (L) attend a press conference in Tel Aviv on February 10 in which Netanyahu said he would meet a number of Israel's national federation of trades unions' demands, among them to raise the monthly minimum wage to 4,300 shekels (860 euros, $1,165) from 3,850 shekels.

AFP - Israel's national federation of trades unions on Saturday called off plans for a general strike in protest at rising prices after the prime minister announced a series of alleviating measures.

On Thursday, the Histadrut federation said it would give advance notice of a nationwide general over rapidly rising prices of essential goods and services.

"The coordinating committee has decided to register next week an advance notice of a strike which will take place two weeks later," a spokesman for the Histadrut federation told AFP.

Under Israeli law, notice of a labour dispute must be given two weeks before a strike can be implemented.

But on Saturday, the Histadrut put off a meeting on Sunday that was to have issued advance notice of the industrial action, media reports said.

The federation instead called for a meeting with the government, aiming to clarify promises made by Prime Minister Benjamin Netanyahu.

In a televised news conference late on Thursday, the premier pledged to meet a number of the federation's demands, among them to raise the monthly minimum wage to 4,300 shekels (860 euros, $1,165) from 3,850 shekels.

He also promised to reverse the latest rise in the price of petrol, cut fares on public transport by 10 percent, and to reduce water tariffs for thrifty users.

"(Households) that use the most water per person choose to do so," Netanyahu said. "A family chooses to water the garden, have a pool ... Those people will pay more, while those who use water more frugally will be able to pay less."

He did not address union demands to lower the costs of bread and housing.

Over the past year, the price of bread in Israel has risen by 10 percent, petrol has jumped 13 percent and water has soared by a massive 134 percent, with the population also under pressure from a rise in indirect taxes.

Finance Minster Yuval Steinitz has said the government's measures to combat rising prices would be financed by cutting the budgets of several ministries and deferring debt relief that was to have come into effect this year.