Puffing prices (Illustration)
צילום: עמית שאבי
Subsidized bread prices to rise 10%
Independent bakeries' union uses legal loophole to circumvent Trade and Labor Ministry's refusal to allow them to raise subsidized bread prices, announces unilateral 10.6% price increase
The independent bakeries' union announces Sunday it was unilaterally raising the prices of subsidized bread. The move was made with out the Industry, Trade and Labor Ministry's approval.
The bakeries' union's attorney, Yoram Bonen, informed the ministry's supervisor of prices, Zvia Dori, of the union's intention: "The Bakeries asked (the Trade and Labor Ministry) to grant the price increase in early October, following a global 35.6% rise in wheat prices.
"The ministry's economists determined a 10.6% raise was in order, but due to the ongoing delay the handling of our request, and since our second, November 4th request on the matter was denied, the bakeries now view themselves as having been granted permission to go ahead with the price increase," said the letter.
The bakeries' union's letter goes on to cite a legal loophole allowing them to take steps to circumvent the ministry's refusal by and unilaterally raise subsidized bread prices.
Industry, Trade and Labor Minister Eli Yishai told Ynet he regrets the bakeries' unilateral decision and intends to "push a bill granting special government funds to compensate the weaker social echelons most affected by the move."
