Local Authorities strike called off

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The government agreed to allocate an additional NIS 850 million to the local authorities for education and welfare.

After all night discussions between Prime Minister Benjamin Netanyahu, Minister of Finance Yuval Steinitz, Union of Local Authorities in Israel chairman Shlomo Bohbot and Forum of the 15 Largest Cities chairman Tel Aviv Mayor Ron Huldai, agreement was reached which prevented the planned nationwide local authorities strike this morning.

According to the agreement, the local authorities will be allocated an additional NIS 850 million for education and welfare. The local authorities will also be compensated over the new salary agreements.

In addition, a committee will be set up to examine options for lowering the price of water and lowering VAT on this basic need. The committee will be asked to submit its findings within 45 days.

As a result of the agreement, all municipal and local services will operate today as usual including schools.

Published by Globes, Israel business news - www.globes-online.com - on January 2, 2011