After months of simmering protests, the dairy industry, medical sector and government are experiencing dramatic upheavals over the course of two days. Three months after the launch of the cottage cheese protest , which led Israeli students to boycott most Tnuva products, the dairy giant announced on Sunday that "the protest has succeeded. We will lower prices." This summer's cottage cheese price cut and discounts on a limited number of dairy products were not enough to assuage consumers and boycott leaders, who continued with their protests, leading Tnuva on Sunday to announce a "permanent price cut for consumers of up to 15 percent." The price cuts, which went into effect Monday, were announced shortly after Tnuva dropped a second bombshell on Sunday: The unexpected resignation of company chairwoman Zehavit Cohen. The price slashes apply to white cheeses, yellow cheeses and puddings. Tnuva also lowered the price of pre-processed milk from its farmers, bringing the total savings for consumers to 125 million shekels ($33 million), 62 percent of which was contributed directly by Tnuva. Just hours after the announcement, Tnuva's competitors announced price cuts as well. Strauss said that starting on Wednesday, white cheeses would cost 12 percent less while its popular Milky pudding snack would be 8% less expensive. Tara also said it would roll out price reductions in the near future. Students and protest leaders remained unimpressed by Tnuva and Strauss' "surrender" to consumer pressure. "We will continue our boycott this week as well," said one protest leader. "The price reduction is a significant accomplishment," said Tel Aviv University Student Union Chairman Uri Reshtik, "but it is not enough." Students said that not only will the boycott continue, but it may be extended to additional companies like Strauss, Osem and Unilever. The initiator of the cottage cheese protests, Itzik Elrov, said on Sunday that the price reduction shows the protest is working. "Consumers understood that they possess enormous power." However, he added, the price reductions are not enough. "We want price reductions of 30% and not just on dairy products. Tnuva also sells Olivia gourmet products as well as meats and frozen foods. We expect price cuts there as well." Shortly before Tnuva announced its price cuts, one of the most powerful women in Israel, Managing Partner of Apax Partners Israel Ltd. Zehavit Cohen, announced her resignation as chairperson of Tnuva and Psagot Investment House. The resignation comes in the wake of an Antitrust Authority raid on Tnuva's offices last week, during which Cohen was summoned for questioning. "As I have said in the past," Cohen announced on Sunday, "the investment house must operate without a hint of impropriety and therefore I have decided to suspend my role at Psagot until the Antitrust Authority completes its investigation of Tnuva." At the same time, Cohen will continue to serve on Tnuva's board of directors, and said she plans to return to the board of Psagot when the investigation ends. In recent weeks, Tnuva, which is controlled by the British Apax investment fund, found itself at the center of a public firestorm. First came the boycott imposed by the National Students Union demanding that it lower prices. This was followed by the Antitrust Authority raid in September on suspicions that Tnuva had hidden information from authorities regarding possible monopolistic practices. Meanwhile, 703 medical residents and 32 medical specialists at Israel's hospitals who submitted letters of resignation following a months' long doctors' strike, are set to begin walking off the job tomorrow. The state attorney on Sunday asked the National Labor Court to issue restraining orders to prevent the residents from leaving their jobs. A group of senior doctors opposed to the walkout, who have called themselves the Organization of Hospital Physicians, held a press conference Sunday at which the organization's chairman, Professor Eran Dolev, warned of "a major catastrophe in the health system. This will be our next day of atonement, in more than one sense. It can still be prevented if the prime minister intervenes to stop the crisis." In other social justice news, the government has postponed today's vote on the Trajtenberg Committee's recommendations because ministers from the Yisrael Beiteinu and Shas parties have asked to make changes to those recommendations. The cabinet was expected to ratify the recommendations on Monday before the proposed law went to the Knesset for a final vote. However, Yisrael Beitenu has said it will not ratify the recommendations unless they can be changed to conform to the party's own economic plan, which it publicized during the social justice protests this summer. On Sunday, Shas chimed in with its own objections. "We will not ratify the report in its current format because it hurts the weaker sectors and does not provide redress for the issue of housing." On the other side of the political map, students and protest leaders lobbied Knesset members to forestall the vote on the Trajtenberg report. Protest leader Daphni Leef described the government's intention to vote on the report by Monday as underhanded. "Why is the prime minister in such a hurry to pass a report that is accepted by almost no one and why is he unwilling to accept appropriate criticism? Where is the social cabinet he promised? The nation demanded transparency, and all we got is more political sleights of hand."
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