As part of its recovery program signed with the workers'
organization and the Histadrut, the City of Jerusalem has
decided to continue deducting the "growth encouragement" from
municipal workers' salaries until the end of 2005.
Despite the Finance Ministry's decision to stop as of July
First the deduction of "growth encouragement" that was
originally placed on the civil sector for a period of two
years, Mayor Rabbi Uri Lupoliansky decided not to cancel this
deduction in municipal workers' salaries due to the city's
recovery program currently underway.
The recovery program at the City of Jerusalem aims to pass on
funds for the improvement of services to city residents
rather than to the salary scale and to create a leaner, more
efficient system. To achieve this, the plan includes a
manpower reduction of 1,000 employees, salary cuts of up to
NIS 4,000 for high-ranking officials, a reduction in the
number of departments, increased tax collection and greater
income. The recovery program is supposed to lead to a
balanced budget already in 2006.
The deduction of the growth encouragement, which is a
variable amount for each person based on the salary ranking,
decreases the municipality's salary expenditures by NIS 16
million annually, therefore not canceling the deduction for
another half a year leaves NIS 8 million in the hands of the
municipality in the 2005 budget.
The City of Jerusalem says not canceling the deduction of the
growth encouragement and extending it for another six months
is an integral part of the recovery program and is done in
full cooperation with the workers' organization and the
Histadrut. This step will allow the city to continue
providing essential services— including cleaning and
improving the look of the city—to local residents.
