Chairman of the Histadrut to the Minister of Finance: “My responsibility is to prevent the erosion of workers’ wages as a result of the sharp increase in the cost of living”

Following the increase in the inflation rate in the economy the Chairman of the Histadrut, Arnon Bar-David, called today on Finance Minister Avigdor Lieberman to promote together with the Presidency of the Business sector and with the Government of Israel an agreement that regulates a mechanism of cost of living allowance. In his letter, the Chairman of the Histadrut writes that “the economic changes in the domestic and global arenas affect the prices of goods and the cost of living in Israel. Appropriate measures are necessary to take steps to deal with this at the national level of the economy. The Consumer Price Index (CPI) increased by 3.5 percent in the past 12 months, breaking the inflation target set by the Bank of Israel.” According to Bar-David, “My responsibility as Chairman of the Histadrut, and as someone who represents the interests of all workers in Israel, is to prevent the erosion of workers’ wages as a result of the sharp increase in the cost of living that primarily harms the most vulnerable workers, but also the entire middle class.”.

The Chairman of the Histadrut calls for the regulation of “a cost of living allowance mechanism of 90% above an annual inflation rate of 3% for 2022 and 2023, to be examined in December of each year. Such an agreement will enable us to formulate agreed rules for adapting future payments to changes in the price level to ensure stability and appropriate earning capacity for the worker of Israel.”