News and Document archive source
copyrighted material disclaimer at bottom of page

NewsMinewar-on-terrorisraeleconomy — Viewing Item

Israel strikes budget cuts

Original Source Link: (May no longer be active)

Yahoo! News Wed, Apr 30, 2003
Middle East - AP

Israeli Unions Launch Nationwide Strike
Wed Apr 30, 7:30 AM ET

By GAVIN RABINOWITZ, Associated Press Writer

JERUSALEM - Israel effectively shut down as the country's main trade union federation launched an open-ended strike to protest the government's planned budget cuts.

The walkout shut down air traffic, ports, schools, the Tel Aviv Stock Exchange, banks, the postal system, public transportation and government offices as of 6 a.m. Wednesday.

Talks between the union and the Ministry of Finance broke down Monday over the government's proposal to cut $2.4 billion from the government's $45 billion budget.

The government claims that the cut is necessary to curtail a widening deficit, which some analysts claim could reach 6 percent of the gross domestic product in the current fiscal year.

Israel's economy has been hard hit by 31 months of Israeli-Palestinian fighting and the downturn in the high-tech industry.

Schools were closed because of the strike, hospitals were working on holiday footing, welfare services shut their doors and garbage was expected to pile up as municipal workers stayed home. National parks and public cultural institutions also joined the strike.

Pandemonium broke out at Ben Gurion International Airport, with travelers shouting and pushing as they tried to move up their flights and leave the country before the strike kicked in. No flights were entering or leaving the country.

One of those affected was President Moshe Katsav, currently on a visit to Poland. His office said it was not yet clear if Katsav would be able to return home.

Israelis lined up to withdraw money from automatic teller machines before they ran out of cash. Gas shortages were expected if the strike lasts more than a few days.

The Histadrut trade union federation is especially up in arms over the Ministry of Finance's plan to overturn collective-bargaining agreements by firing public sector workers and trimming their salaries.

The Israeli legislature was expected to approve the cuts later Wednesday.

Finance Minister Benjamin Netanyahu (news - web sites) was jeered by the opposition as he presented the plan to lawmakers, warning of dire consequences if unemployment is not reduced and the financial crisis is not brought under control.

Netanyahu called on the unions to end the strike, saying it was causing "terrible suffering to the people."

Businesses closings
Despair israel
Half unemployed
Israel cracks down foreign workers { September 5 2003 }
Israel huge deficit
Israel poverty getting worse 2003 report { November 23 2004 }
Israel stricken by unions general strike { June 2007 }
Israel strikes budget cuts
Scud threat pales to daily life { February 11 2003 }

Files Listed: 9


CIA FOIA Archive

National Security
Support one-state solution for Israel and Palestine Tea Party bumper stickers JFK for Dummies, The Assassination made simple