Minister of Labour Mamoun Abu Shahla denied rumors circulated by media, regarding the government's intention to refer a large number of its employees to early retirement as a measure of austerity.

Abu Shahla asserted in a press release that the government is working as directed by President Mahmoud Abbas, without prejudice to the rights of employees in particular and the masses of our people in general.

He said that these rumors are unfounded, and that the truth is that the issue was presented for discussion in the Cabinet, where several options were reviewed in order to reduce the budget deficit, confirming that they were ideas only.

The government announced during its weekly meeting a plan for austerity, cost cutting and rationalization of public resources consumption.

He stressed that any action in the public sector will be taken voluntarily and not forcefully, adding that the trend of the government is to strive towards strengthening the steadfastness of the citizens by carrying out a series of projects, in order to reduce the already high rates of poverty and unemployment.

Minister Abu Shahla called on the media for accuracy and caution, particularly as they affect a large segment of the community, and would only stir up sedition.

President of Public Sector Employees' Union Bassam Zakarneh, whose membership is frozen, said the government plans to lay off 70 thousand employees, as part of the austerity plan.

Zakarneh said: "The government, in a plan prepared in cooperation with the World Bank, seeks to reduce the number of staff from 150 thousand employees, to 80 thousand employees only," adding that 70 thousand employees will be referred to early retirement within the next three years.