The World - News from Jan. 9, 1989

Israel’s powerful Histadrut labor federation threatened to call strikes if the government denies workers realistic cost-of-living pay increases to compensate for a 12% devaluation of the shekel and subsidy cuts. A federation spokesman said that unless the government reimposes price controls and gives assurances that it will not slash education and health budgets, the labor group will withhold support for a plan by Finance Minister Shimon Peres that ends automatic cost-of-living increases. Peres has said he will press union officials to support lower real wages.