A compromise has been proposed in the contentious and drawn-out discussions on salary oversight at the Bank of Israel. The compromise mechanism was suggested by Knesset Finance Committee chairman MK Moshe Gafni (United Torah Judaism).
The new mechanism will shorten the process. It was decided that there will not be a salary committee made up of three judges, a move which would have addded about 5 months to the resolution process. As a result, it will be an administrative council that will authorize salary changes, and if the Ministry of Finance opposes the changes, the issue will move immediately to the Prime Minister for a decision. Under this format, the process will last up to two months, rather than up to nine months.
Gafni said that the discussions were not easy. "It looks like a stew, where everyone is adding another thing. We must shorten the process that was suggested."
Minister of Finance Yuval Steinitz was conspicuously absent from the Finance Committee discussion. Governor of the Bank of Israel Prof. Stanley Fischer, who was present, agreed that the matter is complicated. He joked, "I suggested to the Ministry of Finance that we oversee their salaries, and they oversee ours. They did not agree."
Histadrut chairman Ofer Eini supported the Bank of Israel, and said at the talks, "If the Governor is able to make fateful decisions in the economy, and he is responsible enough, I assume he can surely oversee workers' salaries." Eini added, "I am not prepared for the last word to be with the Treasury."
Published by Globes [online], Israel business news - www.globes-online.com - on March 9, 2010
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