Labor Party Chairman Amir Peretz instructed members of the party's coalition negotiations team not to compromise when it comes to the question of a minimum wage raise.
Prior to the elections, Peretz said Labor would insist on raising the minimum wage rate to 1,000 dollars per month.
Peretz associates told Ynet Tuesday evening the Labor chairman made it clear that the party should not compromise on a NIS 500 raise (about USD 115) in the minimum wage rate by September, as well as additional raises during the new government's term in office.
Negotiators on behalf of Labor and Kadima met Wednesday afternoon to discuss some of the matters on the agenda, with the minimum wage question topping the list. At this time, no real progress has been made on this front, Labor officials said.
"The key to a breakthrough is minimum wage," one Labor official said. "For the time being, there's no bottom line."
However, senior Kadima officials told Ynet in recent days that despite hopes expressed by the Labor party, a raise of the minimum wage rate to USD 1,000 in the coming years is out of the question, as such move would boost unemployment rates by four to five percent.
By the end of the week, the sides are slated to exchange drafts of their Basic Principles for the next government. Then on Sunday the parties’ negotiating teams will meet again for further talks.
The main source of conflict between Labor and Kadima in coalition talks remains the budgeting of Labor’s social demands. On Tuesday, coalition negotiators from each side met and reached final agreements on political and diplomatic issues, but failed to finalize accords on social issues.
Labor negotiator David Libai said that Kadima made clear they had no intention of holding any national referendums prior to various political processes, and only intended to attain governmental approval from a regular majority.
“Without a doubt there were advances,” Libai said. “We asked for clarifications of diplomatic issues, especially on plans for unilateral moves.”
Meanwhile, on the eve of Passover, Acting Prime Minister Ehud Olmert telephoned Amir Peretz to wish him a happy holiday. The two said they have instructed their coalition negotiating teams to conclude talks as soon as possible.