The general strike declared Wednesday across Israel is still in effect, the Histadrut Labor Federation said Thursday.
The Ben Gurion International Airport, which serves as Israel's main gateway, has been allowed to resume normal operations.
The Treasury and the Labor Federation continued their negotiations thought the night but so far to no avail.
The Labor Court is scheduled to hold a hearing on the matter later on Thursday. Should the parties fail to reach a decision by the hearing, Labor Court President Nili Arad will have to rule on how – and if – the strike would be allowed to continue.
Finance Minister Yuval Steinitz, Labor Federation Chairman Ofer Eini and head of the of the financial institutions coordination committee Shraga Brosh are expected to attend the hearing.
The treasury maintains that meeting the Labor Federation's demands will cost the government billions and will mandate lateral budget cuts.
Tani Goldstein and Ran Rimon contributed to this report